problemset3 - iii) Discuss what determines the position of...

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EC 330. Problem Set 3. IS-LM model. Please answer all the questions below and return the problem set on Tuesday April 15. i) Define the IS and explain how the IS is derived. (5 points) ii) Discuss what determines the position of the IS and its slope. (5 points)
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Unformatted text preview: iii) Discuss what determines the position of the LM and its slope. (5 points) iv) Discuss graphically and intuitively the effects of an expansionary monetary policy in the IS-LM model. (5 points)...
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