Problem 2 ( 15 Points ) Explain what does the LM. schedule curve represents . Explain the
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Problem 2 ( 15 Points )
- Explain what does the LM. schedule curve represents . Explain the relationship between real money stock and the LM schedule.
- Derive graphically the LM curve
- Explainwhat happen to the shift of the LM curve if the FED increases Money supplys
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