Question: This problem asks you to analyse the ISLM model algebraically Suppose consumption is a linear function of disposable income CY T a bY T where

This problem asks you to analyse the ISLM model algebraically Suppose consumption is a linear function of disposable income CY T a bY T where a 0 and 0 b 1 Suppose also that investment is a linear function of the interest rate Ir c dr where c 0 and d 0

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