Question: Question) Consider an economy which is characterized by the following: Consumption: C = 200+ 0.75 (Y-T) Tax T = 100 Investment I = 200

Question) Consider an economy which is characterized by the following: Consumption: C

Question) Consider an economy which is characterized by the following: Consumption: C = 200+ 0.75 (Y-T) Tax T = 100 Investment I = 200 - 25 r Government Spending G = 100 Net Exports NX = 0 Nominal Money Supply Ms = 1000 Price level P = 2 Real Money Demand (M/P) d = Y - 100 r a. Derive the IS curve (5 pts)

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