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Problem 4. A little IS-LM Use an IS-LM diagram to show how the following events would shift the IS curve and/or the LM curve. Also
Problem 4. A little IS-LM Use an IS-LM diagram to show how the following events would shift the IS curve and/or the LM curve. Also show what happens to the equilibrium interest rate and the equilibrium level of output in each case. a. The Biden administration passes a bill that increases taxes on the wealthy b. The Fed buys sells a large amount of T-Bills to the public. c. Congress passes a new increased spending bill
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