Question: 8 Two interpretations of the ? S - L M model are that the model explains: a . changes in government spending and taxes or

8
Two interpretations of the ?S-LM model are that the model explains:
a. changes in government spending and taxes or the determination of the supply of real money balances.
b. the short-run quantity theory of income or the short-run Fisher effect.
c. the determination of income in the short run when prices are fixed or what shifts the aggregate demand curve.
d. the determination of investment and saving or what shifts the liquidity preference schedule.
8 Two interpretations of the ?S-LM model are that the model

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