Use the IS LM model to analyze the effects of a housing market crash that reduces consumers ' wealth (This is a shock to the IS) consumers using cash in transactions more frequently in response to an increase in identity theft (This is a shock to the LM) For each shock, use the IS LM diagram to det...

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Use the IS-LM model to analyze the effects of a housing market crash that reduces consumers' wealth

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Use the IS-LM model to analyze the effects of

a housing market crash that reduces consumers' wealth (This is a shock to the IS)
consumers using cash in transactions more frequently in response to an increase in identity theft (This is a shock to the LM)

For each shock,

use the IS-LM diagram to determine the effects on Y and r.
figure out what happens to C, I, and the unemployment rate.

Posted Date: Jun 13, 2024 06:02 AM

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Use the IS-LM model to analyze the effects of a housing market crash that reduces consumers' wealth

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