Even if it is assumed that the central bank holds the money supply exogenous, why is it

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Even if it is assumed that the central bank holds the money supply exogenous, why is it inappropriate to use the IS–LM equations/curves only for the determination of real output for both the closed and open economies? Frame your answer in terms of the implications of Walras’s law.

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Monetary Economics

ISBN: 9780415772099

2nd Edition

Authors: Jagdish Handa

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