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evaluate how the IS curve and MP curve might be affected A decrease in financial frictions. An autonomous easing of monetary policy. An increase in

evaluate how the IS curve and MP curve might be affected

  • A decrease in financial frictions.
  • An autonomous easing of monetary policy.
  • An increase in the current inflation rate.
  • Firms become more optimistic about the future of the economy.
  • The new Federal Reserve chair begins to care more about fighting inflation.

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