5 In a closed (no foreign sector), mixed economy with stable prices, if we assume that consumption (C) and investment (I) spending do not depend on the interest rate (r), can we conclude that a The interest related expenditure (IRE) function is vertical b Monetary policy has no effect on real incom...

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5. In a closed (no foreign sector), mixed economy with stable prices, if we assume that consumption...

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5. In a closed (no foreign sector), mixed economy with stable prices, if we assume that consumption

a. The interest-related expenditure (IRE) function is vertical?

b. Monetary policy has no effect on real income and output? Explain your answers.

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Question Posted: Nov 13, 2024 08:01 AM

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