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income, the interest rate,… Show more Use IS-LM model to p

Paper help Economics income, the interest rate,… Show more Use IS-LM model to p

Economics

income, the interest rate,… Show more Use IS-LM model to p

income, the interest rate,… Show more Use IS-LM model to predict the effects of each of the following shocks on income, the interest rate, consumption, and investment. In each case, explain what the FED should do to keep income at its initial level. a. A wave of credit-card fraud increases the frequency with which people make transactions in cash. b. A best-seller titled Retire Rich convinces the public to increase the percentage of their income devoted to saving (i.e. decrease consumption) • Show less

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