When is monetary policy more effective

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In the IS/LM and AD/AS models

What are the effects of an increase in the money supply? Show graphically and explain

 

When is monetary policy more effective, when the LM curve is relatively flat, or when the LM curve is relatively steep? Explain.

Reference no: EM13996384

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When is monetary policy more effective : What are the effects of an increase in the money supply? Show graphically and explain. When is monetary policy more effective, when the LM curve is relatively flat, or when the LM curve is relatively steep? Explain.
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