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5. a. Describing in words a fully labeled figure with only the LM curve; state the effects of monetary expansion on interest rate using such
5. a. Describing in words a fully labeled figure with only the LM curve; state the effects of monetary expansion on interest rate using such a figure.Explain the mechanism or steps through which the effect you state occurs.
b. Now describing a fully labeled figure with both IS and LM curves in words; state the effects of monetary expansion on output.Explain in words why monetary expansion has the effect you state.
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