Question

1) In the ISLM model suppose the demand for investment become less responsive to changes in roe. What will be the impact of effectiveness of fiscal policy

2) In the economy the central bank pursues an expensionary monetary policy simultaneously the government of the economy lower the tax rates illustrate the effect of such policy mix on equilibrium output and interest rate

3) suppose the government increase the expenditure using the ISLM model to show the impact of the increase in the government expenditure under 2 assumption
a) the government keep the roe constant
b) the money stock remains unchanged
(Use diagram) please use diagram

Answer 1

Answer:

1111111111111111111t