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    Question

    src="https://www.ixambee.com/questionimage/Chapter/1644906168-41.png" alt="" />
    A 5.67% Correct Answer Incorrect Answer
    B 6.9% Correct Answer Incorrect Answer
    C 3% Correct Answer Incorrect Answer
    D 7.14% Correct Answer Incorrect Answer

    Solution

    Derive the IS and LM equations and equate the two equations:

    r*=7.14%

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