1.      The IS curve is Y = 20 – 1.5r, and the aggregate demand curve
is Y = 15.5 – 0.3?. When the interest rate is 7 percent, the
inflation rate is ________ percent.

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Question: 1.      The IS curve is Y = 20 – 1.5r, and the aggregate demand curve is…
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A. 3.6
B. 9.5
C. 14.6
D. 20.0
E. None of the Above

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