Please answer fast Derive an IS curve if consumption takes thefollowing form:Ct/Y =a c+x YtExplain how this changes the impact ofshocks.

IS curve is a curve that shows the inverse relationship between the interest rate and disposable…

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Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter10: Income And Expenditures Equilibrium

Section: Chapter Questions

Problem 8E

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Derive an IS curve if consumption takes the
following form:
Ct/Y =a c+x Yt
Explain how this changes the impact of
shocks.

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