Macroeconomics
Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Chapter 9, Problem 2NP

a)

To determine

To describe: The real interest rate is to be calculated where M = 6000, πe=0.02 and the graph of LM curve is also to be drawn.

b)

To determine

To describe: The real interest rate is to be calculated where M = 6600 and the graph of LM curve is also to be drawn. This graph is also to be compared with the above graph.

c)

To determine

To describe: The real interest rate is to be calculated where M = 6000, πe=0.02 and the LM curve is also to be drawn. This curve is also to be compared with the graph of section (a).

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