Question
Back to a closed economy. Explain how changes in the MPC and autonomous consumption would affect the Keynesian Cross diagram (and resulting IS curve). Also
Back to a closed economy. Explain how changes in the MPC and autonomous consumption would affect the Keynesian Cross diagram (and resulting IS curve). Also explain how changes in the elasticity of money demand would affect the LM curve. How would the above-mentioned changes affect how you would anticipate fiscal and monetary policy to function?
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Managerial Economics and Organizational Architecture
Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr
5th edition
73375829, 978-0073375823
