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Intermediate Macroeconomics QUESTION 2 Using a graph, discuss monetary policy ineffectiveness with respect to a depression. a) (10 marks) b) Bank Negara Malaysia has announced

Intermediate Macroeconomics

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QUESTION 2 Using a graph, discuss monetary policy ineffectiveness with respect to a depression. a) (10 marks) b) Bank Negara Malaysia has announced that the Government intends to adopt expansionary scal policy to offset the recent drop in real output. Use an lS-LM diagram to help explain your concerns regarding the possibility that the suggested policy is ineffective. (10 marks)

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