Changes in autonomous investment

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Reference no: EM132184404

The central bank should never use monetary policy to combat business cycle fluctuations coming from changes in autonomous investment (i.e. it should keep the money supply constant) if it also wishes to keep longer term movements in the price level to a minimum. Is this claim true, false or uncertain? Explain by using words and a single IS/LM diagram and a single AS/AD diagram

Reference no: EM132184404

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