33. Using the IS - LM framework, in which model would monetary policy be more

effective (in terms of increasing the level of income)? THINK IT THROUGH

A. I = f (i) S = f (Y)G = G_o

B. I = f (i) S = f (Y)G = G_o - g (i)

34. Using the IS - LM framework, in which model would monetary policy produce larger

income changes (per unit of monetary stimulus)? THINK IT THROUGH

1. Tx = Tx_o
2. Tx = T_o + tYt > 0