For each of the changes in expectations in parts a through (d), determine whether there is a

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For each of the changes in expectations in parts a through $d$, determine whether there is a shift in the IS curve, the LM curve, both curves, or neither. In each case assume that no other exogenous variable is changing.

a. a decrease in the expected future real interest rate

b. an increase in the current real policy interest rate

c. an increase in expected future taxes

d. a decrease in expected future income

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Macroeconomics

ISBN: 9780134897899

8th Edition

Authors: Olivier Jean Blanchard

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Question Posted: Mar 11, 2024 03:00 AM

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For each of the changes in expectations in parts a through (d), determine whether there is a

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Macroeconomics

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