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Consider IS-LM Model: Real Sector: Y=C+I+G C=a+b (1-t) Y I=d-ei G=GO t-income tax rate i- rate of interest Money Market: Ma=M

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- 12 Y= y = y = ctita atbC1-tyt a-ei +40 atdt Gou ei + bc1-t2y y- bll-t? Y = Y (Inb(1-t)) atdt4o- ecí = att Gou ei y = atat yooyyy to.03 i I 0.25y - l = gor 60 g.u4 0.03 | Y 90 O- 25 M12 = 0.25 m22 = o.yu cij : (-) it) mij (12 = -12 172 1 mi) = 4:2!+

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