Increase in riskiness of bonds relative to holding money

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Show the IS, LM or FE curve shifts in response to the following events. Note we are not analyzing general equilibrium here, just the shifts of the individual curves. Also note it is possible that none of the curves shift or multiple curves shift. a. Increase in government spending, keeping taxes fixed b. Decrease in the nominal money supply by the Federal Reserve c. Increase in the riskiness of bonds relative to holding money d. Decrease in the female labor force participation rate e. An increase in the depreciation rate of the capital stock

Reference no: EM131094717

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