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IS curve from Savings-Investment Assignment | Homework For You

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December 13th, 2019

(a) Derive the IS curve from Savings-Investment figure. Explain all the steps.

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Show using the IS-LM figure what happens to real interest rate, output and prices in each of the following scenarios in the short-run and the long-run.

(b) Real money supply increases

(c)A temporary increase in government purchases for military purposes. Will it matter whether the temporary increase in military spending is funded by taxes or by borrowing? Get Economics homework help today

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