For each of the following situations, describe how (if at all) the IS, MP, and AD curves
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For each of the following situations, describe how (if at all) the IS, MP, and AD curves are affected.
a. A decrease in financial frictions
b. An increase in taxes and an autonomous easing of monetary policy
c. An increase in the current inflation rate
d. A decrease in autonomous consumption
e. Firms become more optimistic about the future of the economy.
f. The new Bank of Canada governor begins to care more about fighting inflation.
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Related Book For
The Economics Of Money, Banking And Financial Markets, Seventh Canadian
ISBN: 9780226531922
7th Canadian Edition
Authors: Frederic S. Mishkin
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