1.2. Looking at the same site as you used in question 1. www.fgn.unisg.ch/eurmacro/Tutor/islm.html, the exoge- nous parameters...
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1.2. Looking at the same site as you used in question 1. www.fgn.unisg.ch/eurmacro/Tutor/islm.html, the exoge- nous parameters in this simulation are the MPC (c), the sensitivity of money demand to income (k), the sensi- tivity of money demand to the interest rate (h), and the sensitivity of investment to the interest rate (b). For each of these parameters, explain what happens in the IS/LM graph when they are increased. What happens to equilibrium output and the equilibrium level of the interest rate?
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Related Book For
The Economics Of Money Banking And Financial Markets
ISBN: 9780321598905
9th Edition
Authors: Frederic S. Mishkin
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