Question: C = 120 +0.8X (Y -T) - Consumption function T = 400 - Taxes I = I(r) =50-5Xr - Investment function G = 400 -

C = 120 +0.8X (Y -T) - Consumption function T = 400 - Taxes I = I(r) =50-5Xr - Investment function G = 400 - Government purchases M = 2,000 - Money supply P = 5 - Price level M d =2XY - 25 X r - Demand for real money balancesFrom the above list, the resulting equation of the IS curve is: A.Y+25>

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