For each of the following, determine whether the IS curve, the LM curve, both curves or neither curve shifts. In each case, assume that expected current inflation and future inflation are equal to zero, and that no other exogenous variable is changing. a. A decrease in the expected future real interest rate. b. A decrease in the current short-term nominal interest rate. c. A decrease in expected future income

For each of the following, determine whether the IS curve, the LM curve, both curves or neither curve shifts. In each case, assume that expected current inflation and future inflation are equal to zero, and that no other exogenous variable is changing. a. A decrease in the expected future real interest rate. b. A decrease in the current short-term nominal interest rate. c. A decrease in expected future income

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter14: Money And The Economy

Section: Chapter Questions

Problem 10QP

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