Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Part II. Technical/Mathematical
For each of the following events and assuming ceteris paribus, describe and explain concisely
the effects, if any, on the IS schedule and/or the LM schedule (or alternatively the MP
schedule) and hence the output and real interest rate in equilibrium.
2.1

Transcribed Image Text:d). Investment demand becomes less interest sensitive.
-1-
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