IS-LM-EE and other important Graphs For Econ 304

Macroeconomics plus MyEconLab plus eBook 1-semester Student Access Kit (6th Edition)

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Unformatted text preview: For Econ 304, the FE curve below is the EE curve. They are the same. Standard IS LM Curve at Equilibrium Monetary Expansion: Money Supply Rises, Rates fall, Investment Rises, GDP rises Quantiy of Money Demanded Rises, Rates rise nominally, Investment drops nominally, GDP falls. NET: Rates decrease, GDP Rises. Monetary Contraction: Money Supply falls, Rates rise, Investment falls, GDP falls Quantiy of Money Demanded falls, Rates fall nominally, Investment rises nominally, GDP rises nominally. Illiquidity affect. NET:Rates increase, GDP falls. Fiscal Expansion Crowding Out Theory - (Government spending rises OR Taxes decrease), Demand for money rises, Rates Increase, Investments decrease, GDP decreases NET: Rates increase, GDP increases Monetary and Fiscal Expansion. Monetary Expansion: Money Supply Rises, Rates fall, Investment Rises, GDP rises Quantiy of Money Demanded Rises, Rates rise nominally, Investment drops nominally, GDP rises. NET: Rates fall, GDP increases....
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This note was uploaded on 01/31/2008 for the course ECON 304 taught by Professor Eyler during the Fall '07 term at Sonoma.

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IS-LM-EE and other important Graphs For Econ 304 - For Econ...

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