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Economics Question on Indifference curve analysis

Suppose in a closed economy aggregate demand is given by AD = A(y,i) where y is real income and i is rate of interest. IS curve represents a locus of different combinations of y and i for which y=A(y,i). What is dydi\frac{dy}{di} along the IS curve?

A

Aj′1+Ay′\frac{A'_j}{1+A'_y}

B

Aj′1−Ay′\frac{A'_j}{1-A'_y}

C

1−Ay′Aj′\frac{1-A'_y}{A'_j}

D

1+Ay′Aj′\frac{1+A'_y}{A'_j}

Answer

Aj′1−Ay′\frac{A'_j}{1-A'_y}

Explanation

Solution

The correct option is(B): Aj′1−Ay′\frac{A'_j}{1-A'_y}