Figure 20.2: IS Curve Rel IS3 IS IS2 ISS IS is the IS curve without accounting for the interest rate gap between the US and the rest of the world is the IS curve that includes the interest rate gap. Consider Figure 20.2. If, then, a. IS 3: IS 5 b. IS 1: IS 5 C. IS 5; IS 1 d. IS 2; IS 5 e. IS 1; IS 3

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