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Use the /S-LM model to show how each of the following events changes the equilibrium interest rate and income. a. The president signs a tax
Use the /S-LM model to show how each of the following events changes the equilibrium interest rate and income. a. The president signs a tax cut into law. LM Interest rate, r IS Income, output, Y b. The central bank buys bonds in open-market operations.C. A computer bug causes malfunctions in many ATM machines, inducing people to hold more money in their wallets. Interest rate, r X Income, output, Y d. A flu pandemic induces consumers to stay at home rather than go shopping- rest rate, F
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