This is on the basics of the IS-LM model. The model is given by the following system of equations Y = C(Y; Y;r; A) + I(Ye;r; K) M/P = Y/V(i) where ri- and A denotes the wealth of the households. The rest of the notations are standard. What happens to the IS curve when the stock of capital increases? Select one or more: a. A movement along the IS curve b. IS shifts to the right c. Nothing d. IS shifts to the left
This is on the basics of the IS-LM model. The model is given by the following system of equations Y = C(Y; Y;r; A) + I(Ye;r; K) M/P = Y/V(i) where ri- and A denotes the wealth of the households. The rest of the notations are standard. What happens to the IS curve when the stock of capital increases? Select one or more: a. A movement along the IS curve b. IS shifts to the right c. Nothing d. IS shifts to the left
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
Transcribed Image Text:This is on the basics of the IS-LM model. The model is given by the
following system of equations
Y = C(Y;Y;r; A) + I(Y;r; K)
M/P = Y/V(i)
where ri-
and A denotes the wealth of the households. The rest of
the notations are standard.
What happens to the IS curve when the stock of capital increases?
Select one or more:
a. A movement along the IS curve
b. IS shifts to the right
c. Nothing
d. IS shifts to the left
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