Money supply, money demand and economic growth

The LM model as of exercise sheet 3. Vary the rate of income growth (dY) and check by how much money supply must change to keep the interest rate constant. For example, if you assume that GDP increases by 10 percent, change dY to 1.1. You find dY on the left hand control panel (subcategory "Zahl").

 

Prof. Dr. Christian Mueller

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Resource Type
Activity
Tags
2014  example  guc  lm  macrotheory  model 
Target Group (Age)
14 – 19+
Language
English (United Kingdom)
 
 
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4.0
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