Question: 2. (30pts 4 bonus pts) In the IS-LM model seen in class, consumption only depends on disposable income. What happens if it also depends

2. (30pts 4 bonus pts) In the IS-LM model seen in class,

2. (30pts 4 bonus pts) In the IS-LM model seen in class, consumption only depends on disposable income. What happens if it also depends on the interest rate? Concretely, let's change C (Y) to C (Yd, r) where Cyd (Yd, r) > 0 and C, (Yd, r)

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