Question
In the wake of rising inflation, the Reserve Bank of India (RBI) reduced thewithdrawal limit of debit cards. 2a. Show the impact of this policy
In the wake of rising inflation, the Reserve Bank of India (RBI) reduced thewithdrawal limit of debit cards.
2a. Show the impact of this policy stance on the money demand function andthe slope of the LM curve.
2b.Illustrate, using the IS-LM model for a closed economy, the impact of thispolicy stance on equilibrium levels of income and interest rate.
Use proper diagrams
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Business A Changing World
Authors: O. C. Ferrell, Geoffrey Hirt, Linda Ferrell
10th edition
1259179397, 978-1259179396
