Assume an economy where the consumption function is defined as C = CC + CY and the investment function is defined as l = ir , where Y is total income and r is the interest rate. What does the slope of the IS curve depend on?

Assume an economy where the consumption function is defined as C = CC + CY and the investment function is defined as l = ir , where Y is total income and r is the interest rate. What does the slope of the IS curve depend on?

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter18: The Keynesian Model

Section: Chapter Questions

Problem 6SQ

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