Question: Question 2 (13 points). Assume that the consumption function is given by C = 200 + 0.5 (Y - T), and the investment function is

Question 2 (13 points). Assume that the consumption function is given by C = 200 + 0.5 (Y - T), and the investment function is / = 1,000 -200r, where r is measured in percent, G equals 300, and T equals 200. a. (5 points). What is the numerical formula for the IS curve? What is the slope of the IS curve? b. (2 points). If r is 1 percent, what is /? What is Y? 1- - - - c. (6 points). Suppose that the government increase spending (G). Use the IS-LM model to illustrate graphically and explain the policy impact

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The permanence rule: We tend to have more confidence in information that is of a more permanent nature than information that is of a temporary nature.

The official stamp rule: We tend to have more confidence in information that is exempt from the Freedom of Information Act than if the same information was made readily available.