Question: Compare youranswer with that when t = 0. Comment on your result. DefinetheIScurve. Why is it downward-sloping? Show how theIScurve divides theISTRdiagraminto two regions, such

Compare youranswer with that when t = 0. Comment on your result. DefinetheIScurve. Why is it downward-sloping? Show how theIScurve divides theIS–TRdiagraminto two regions, such that points off theIScurvecorrespond tomarket disequilibrium, which can becharacterized asexcess demand orsupply in the goods market.

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