In the IS curve model, the consumer demand can be represented by the following equation: C = a + B(YT) where C is consumption, Y is gross domestic product and T are taxes. Which of the following hold(s) ? Select one or more: a.The value of ß can be any number greater than 0 b. If household income increases by 1, consumption increases by C.The value of a can be any number greater than 0 d. a represents consumption required to survive e. Ca represents consumption for leisure f. According to the equation, the interest rate can influence consumer demand

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A: TI curve= 12-13q P=6 q=4

Q: identify the equilibrium level of income given y=600;,C=550; I=100 S=? solve for the S?

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A: 1. Equation of the IS curve is given by - Y = C + I + G + Nx    Here, C = 120 + 0.8YD  YD = Y - Tx…

Q: d) At equilibrium, what is the level of saving in Peru? Show your work. On a separate graph, draw…

A: Given that:C = 400 + 0.6YdT = 600Equilibrium Output= 4000

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A: In this case, the consumption function is given as *, where YD is the disposable income.

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A:

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Q: The economy is described by the following functions: C = 120 + 0.8YD Tr = 15 Tx = 5 I =…

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A: The following problem has been answered as follows:

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