Homework Answers
Ans. Option d
Increase in money supply at given money demand leads to decrease in interest rate which leads to fall in cost of borrowing inducing investment spending which increases income inducing consumption.
Expansionary fiscal policy leads to increase in government spending (or decrease in tax) which increases income level inducing consumption which further increases income and induces consumption further.
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Just e) f) and g) if possible please Question 5: The IS-LM model Consider the following...
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first blank options: decrease/ increase
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Just e) f) and g) if possible please
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I need help with this.
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