Using the IS – LM framework, in which model would monetary policy be more effective (in terms of increasing the level of income)?
Using the IS – LM framework, in which model would monetary policy be more
effective (in terms of increasing the level of income)? THINK IT THROUGH
A. I = f (i) S = f (Y) G = Go
B. I = f (i) S = f (Y) G = Go – g (i)
Using the IS – LM framework, in which model would monetary policy produce larger
income changes (per unit of monetary stimulus)? THINK IT THROUGH
- Tx = Txo
- Tx = To + tY t > 0
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