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Macroeconomics Test

by | Dec 1, 2023 | Posted Questions

33. 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)

34.
Using the IS – LM framework, in which model would monetary policy produce
larger

income changes (per unit of monetary
stimulus)? THINK IT THROUGH

  1. Tx = Txo
  2. Tx = To + tY t > 0
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