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Using the IS-LM model, determine the impact on stock prices of each of the changes in policy described in (1) to (3). If the effect
Using the IS-LM model, determine the impact on stock prices of each of the changes in policy described in (1) to (3). If the effect is ambiguous, explain what additional information would be necessary to reach a conclusion. 1. An unexpected expansionary monetary policy without a change in fiscal policy. 2. Fully anticipated expansionary monetary policy without policy change tax. 3. Fully anticipated expansionary monetary policy combined with fiscal policy unexpected expansionist.
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