Question
Mathematically, what is the total (or net) effects of an increase of the wealth of households on Y? However, we now assume that the
Mathematically, what is the total (or net) effects of an increase of the wealth of households on Y? However, we now assume that the central bank controls the nominal interest rate. (Hint: Totally differentiate IS and LM equations. Set dX = 0 if X is not {Y, A, M}. Rearrange to get dYldA.) Select one or more: a. dY/dA CA V(i) 1-Cy+ YV'(1) CA 1-Cy b. dY/dA : O c. dY/dA . V(i) 1-Cy+ YV'(i) 1 O d. DY/DA V(i) 1-Cy-(C,+I,) YV'(i)
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Personal Finance Turning Money into Wealth
Authors: Arthur J. Keown
7th edition
978-0133856507, 013385650X, 133856437, 978-0133856439
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