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    Macroeconomics Study Set 47
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    Exam 5: Goods and Financial Markets: the Islm Model
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    Explain in Detail What Effect a Central Bank Purchase of Bonds
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Explain in Detail What Effect a Central Bank Purchase of Bonds

Question 62

Question 62

Essay

Explain in detail what effect a central bank purchase of bonds will have on: (1) the LM curve and (2) the IS curve.

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A central bank purchase of bonds causes ...

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