For each of the changes in expectations in parts (a) through (d), determine whether there is a

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For each of the changes in expectations in parts (a) through (d), determine whether there is a shift in the IS curve, the LM curve, both curves, or neither. In each case assume that no other exogenou variable is changing.

a. a decrease in the expected future real interest rate.

b. an increase in the current real policy interest rate.

c. an increase in expected future taxes.

d. a decrease in expected future income.

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Macroeconomics

ISBN: 9780133780581

7th Edition

Authors: Olivier Jean Blanchard

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Question Posted: Mar 04, 2024 11:00 AM

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For each of the changes in expectations in parts (a) through (d), determine whether there is a

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a a decrease in the expected future real interest rate This change would lead to an increase in inve...View the full answer

Macroeconomics

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