IS-LM Model - hw6 - Economics 312 Name(s Fall 2013 Homework#6 1 Please define the following terms or concepts(4 points a Phillips Curve A graphical

IS-LM Model - hw6 - Economics 312 Name(s Fall 2013...

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Economics 312 Fall 2013 Name(s) Homework #6 1.Please define the following terms or concepts: (4 points) b.Fiscal Policy c.Progressive Tax d. 2.Briefly explain why the IS curve slopes down and the LM curve slopes up. According to the theory of liquidity preference why does an increase in the money supply lower the interest rate? What does your explanation assume about price level? (4 points)

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