Exam 2 – Econ 304 – Chuderewicz – Spring 2012
Find the expression for the LM curve (r in terms of Y). Please show all work SCENARIO #1 – AN LM SHOCK! Now suppose that there is . non-policy. shock to nominal money supply so that the new nominal money supply is: M = 4120. S1 a) (5 points) Name and explain two reasons why money supply would change the way it did. Note that this was a . non ... ................
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