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For Each of the Following Cases, Draw an IS Curve

Question 107

Essay

For each of the following cases, draw an IS curve to show how each of the factors affects the IS curve.
(a) The United States enters into a new trade agreement to increase exports to partner nations.
(b) The government widens the income tax brackets to effectively lower taxes.
(c) The government institutes a larger exemption from taxes for both single and married taxpayers.

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