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    Macroeconomics Study Set 39
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    Exam 11: Aggregate Demand I: Building the Is-Lm Model
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    A Falling Investment Function Yields a Falling IS Curve, but a Falling
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A Falling Investment Function Yields a Falling IS Curve, but a Falling

Question 62

Question 62

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A falling investment function yields a falling IS curve, but a falling demand for real money balance curve yields a rising LM curve. Why?

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Both the IS and the LM curves plot relat...

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