For each of theoe shockss say whether it shits the IS shedule or the L M schedule, and in which Jirection: (a) an exgected future tical expansion (b) a higher money sumply target. (c) a tise in) money demand caused by higherinterest ratr being paid by banks on bank deposits.
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- The IS schedule represents equilibrium in the goods market, where investment equals savings. - The LM schedule represents equilibrium in the money market, where money demand equals money supply. Show more…
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