Question: Trace the procedure for deriving the IS schedule, as was done in Figure 13, for the case in which, rather than a fixed level of

Trace the procedure for deriving the IS schedule, as was done in Figure 13, for the case in which, rather than a fixed level of taxes (T), we have taxes depending on income
T = t1Y
Where t1 is the marginal income tax rate will the IS schedule for this case be steeper or flatter than when the level of taxes is fixed?

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