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"If the Fisher hypothesis is true, then changes in the growth rate of the money stock translate one-for-one into changes in i.

“If the Fisher hypothesis is true, then changes in the growth rate of the money stock translate one-for-one into changes in i.” Explain this effect and explain in words how the change in both money growth and expected inflation would affect 1) the IS curve, 2) the LM curve.
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Dear student, Clarification: An increase in government purchases or a decrease in taxes (money) shifts the IS curve to... View the full answer

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