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The theoretical IS-LM model differs... 1. How does the working of the theoretical IS-LM model differ from how variables behave in reality? 2. Do empirical

The theoretical IS-LM model differs...

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1. How does the working of the theoretical IS-LM model differ from how variables behave in reality? 2. Do empirical ndings on the effect of an increase in federal funds rate on several economic variables, such as, output, unemployment rate and the price level validate the conclusions of the lS-LM model? Explain your answer clearly

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