3 if the is curve does not shift when autonomous

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3. If the IS curve does not shift when autonomous investment increases by $175 MM, autonomous taxes increase by $437 MM, and no other autonomous components change, (a) what is the value of the expenditure multiplier?
(b) what is the value of the tax multiplier?
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4. In our derivation of the IS curve we made the simple assumption that taxes are com- pletely autonomous: T = T . A more realistic tax function would be one where taxes increase with income as described by T = T + tY . Follow the steps you undertook in question ( 2 ) with this more realistic tax function to derive a new IS-curve equation.

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