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1. 2. 3. Explain what happens to the IS-LM equilibrium point when the following conditions Occur: b. A decrease in inves
Posted: Wed Jul 06, 2022 6:24 pm
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- 1 2 3 Explain What Happens To The Is Lm Equilibrium Point When The Following Conditions Occur B A Decrease In Inves 1 (367.09 KiB) Viewed 24 times
1. 2. 3. Explain what happens to the IS-LM equilibrium point when the following conditions Occur: b. A decrease in investment. A reduction in lump-sum tax. Tax (T) and government expenditure (G) increase by the same amount. Explain whether monetary policy is effective to overcome inflation or economic recession when money demand is not sensitive to interest rates. investment function is very sensitive to interest rates. b. "In IS-LM analysis, the effectiveness of fiscal policy depends on the degree of investment sensitivity to interest rates". With reference to the expansionary fiscal policy, explain this
statement.