Question
Given: 1. Money Supply M = 1 2. Price Level = 1 3. The liquidity function L(i) = 1/(1+i) Questions: 1. Graph the LM relation
Given:
1. Money Supply M = 1
2. Price Level = 1
3. The liquidity function
L(i) = 1/(1+i)
Questions:
1. Graph the LM relation with i on the vertical axis, and Y on the horizontal
axis.
2. When M increases from 1 to 2, how should the LM relation shift?
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Econometric Evaluation Of Socio-Economic Programs Theory And Applications
Authors: Giovanni Cerulli
1st Edition
3662464055, 9783662464052
