Answer to Question #73328 in Macroeconomics for Remi Djimi

Question #73328
Part III: Diagram & Analysis (f) Expansionary Monetary Policy: Suppose the money supply increased to M=P = 1840. Solve for Y,i,C, and I, (repeat parts (a) through (e)) and describe in words the e ects of an expansionary monetary policy. Show the change on the diagram below. Label your diagram. Identify the old and the new equilibrium. (g) Expansionary Fiscal Policy: Suppose the money supply is at its initial value of 1600 but gov- ernment increases its spending to G = 400. Solve for Y,i,C, and I, (repeat parts (a) through (e)) and describe in words the e ects of an expansionary scal policy. Show the change on the diagram below. Label your diagram. Identify the old and the new equilibrium.
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2018-02-09T08:15:08-0500

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