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Determine the effects of each of the following shocks on income, the interest rate, consumption, and investment using the IS–LM model. In each case, explain what the Central Bank should do to keep income at its initial level.

01 / 10 / 2021 Assignment

This paper circulates around the core theme of Determine the effects of each of the following shocks on income, the interest rate, consumption, and investment using the IS–LM model. In each case, explain what the Central Bank should do to keep income at its initial level. together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.

a. After the invention of a new efficient drug, many pharmaceutical firms decide to conduct research in this area and make additional investment into equipment.

b. A wave of credit-card fraud increases the frequency with which people make transactions in cash.

c. Households decide to increase the percentage of their income devoted to saving.



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