15 The IS-LM Model, Part 4-1

15 The IS-LM Model, Part 4-1 - Agenda Policy Analysis with...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1 15-1 The IS – LM Model, Part 4 15-2 Agenda •Po l i cy An a ly s i s w i th th e IS – LM Model 15-3 Policy Analysis with the IS – LM Model •Mon e t a ry po l i cy :
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 15-5 Policy Analysis with the IS – LM Model •Exp an s ion a ry m on e t a ry po l i cy : ¾ Increases in the nominal money supply. 15-6 Expansionary monetary policy Y r Y 0 r 0 FE LM 0 IS 0 15-7 Expansionary monetary policy •An exp an s ion a ry m on e t a ry po l i cy sh i f t s the LM curve to the right. ¾ This increases M s /P directly. ¾ At the initial real interest rate ( r 0 ), M > L , and r begins to fall. ¾ A falling
Background image of page 2
3 15-9 Policy Analysis with the IS – LM Model •Mon e t
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 10

15 The IS-LM Model, Part 4-1 - Agenda Policy Analysis with...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online