How does an increase in the tax rate affect the is curve


Problem

a. How does an increase in the tax rate affect the IS curve?

b. How does the increase affect the equilibrium level of income?

c. How does the increase affect the equilibrium interest rate?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: How does an increase in the tax rate affect the is curve
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