10 Oct 2018

Suppose we were living in an economy where the LM curve was flat. Within such an economy, discuss the effectiveness of monetary policy. Be careful to write down the assumptions that you make, as well as the structure of the framework with which you are using to answer this question, i.e. the key equations, etc. Your answer should outline under what scenarios monetary policy would work, and under what scenarios, monetary policy would be ineffective in effecting output.

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Casey Durgan
Casey DurganLv2
11 Oct 2018

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