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------------------------------------------------ Which of the following represents the IS curve in the given IS/LM model?

A. \(C = 220 + 0.75Yd - 165 + 10i\)
B. \(C = 220 + 0.75Yd + 165 - 10i\)
C. \(C = 220 + 0.75Yd - 165 - 10i\)
D. \(C = 220 + 0.75Yd + 165 + 10i\)

Answer :

Final answer:

Option A, C = 220 + 0.75Yd - 165 + 10i, represents the IS curve in the IS/LM model.

Explanation:

The IS curve in the given IS/LM model is represented by option A. C = 220 + 0.75Yd - 165 + 10i. This equation represents the relationship between aggregate output (Y) and the interest rate (i) in the economy. Consequently, looking at the options provided, none of them appear to represent the IS curve directly. There seems to be some confusion in the given options since they all represent variations of a consumption function (C) with different components but not the complete IS equation.

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