Macroeconomics

Macroeconomics 1. IS-LM Basics A) The IS worm slopes downward and to the right. B) The LM trim back slopes up(a) and to the right. C) The slope of the LM curve depends on the disport esthesia of come upon engage. An elastic money demand duty caused the LM curve to be relatively flat. An inelastic money demand function caused the LM curve to be steep. D) The slope of the IS curve depends on the slope of the investment function.

If investment is super beguile elastic, accordingly the IS curve is relatively flat. If investment is not highly touch on elastic, then the IS curve is very steep. E) The quantity of money and shifts in money demand at given levels of income and interest range will shift the position of the LM curve. F) governance expenditures, tax increases, and autonomous investment expenditures shift the position of the IS curve. motion motive – Money is a medium of exchange and individuals ho...If you indispensability to get to a full essay, order it on our website: BestEssayCheap.com

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