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Write an equation relating y and r and graph it

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Consider the following aggregate consumption and investment function for a closed economy: C = 15 + 0.70Y , I = 30 + 0.1Y - 7.5 r
Here, investment is expressed as a function of income Y and interest rate r (expressed as percentage).

If G0 = 50, write an equation relating Y and r and graph it. This graph is called the IS curve.

Reference no: EM13877569

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