Consider the following model of the IS curve without an international sector:
Consumption:
;
Investment:
; and
Government expenditure:
)
With this formulation the IS curve is:
A) horizontal.
B) less steeply sloped than the "standard" IS curve.
C) vertical.
D) more steeply sloped than the "standard" IS curve.
E) Not enough information is given.

Question

Consider the following model of the IS curve without an international sector:
Consumption: 
;
Investment: 
; and
Government expenditure: 
)
With this formulation the IS curve is:
A) horizontal. 
B) less steeply sloped than the "standard" IS curve. 
C) vertical. 
D) more steeply sloped than the "standard" IS curve. 
E) Not enough information is given.

Quizplus · Accepted Answer

The Answer of Consider the following model of the IS curve without an international sector:
Consumption: 
;
Investment: 
; and
Government expenditure: 
)
With this formulation the IS curve is:
A) horizontal. 
B) less steeply sloped than the "standard" IS curve. 
C) vertical. 
D) more steeply sloped than the "standard" IS curve. 
E) Not enough information is given.

Consider the Following Model of the IS Curve Without an International