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Events affects stock prices

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Reference no: EM131728016

Using an IS-LM model, illustrate and explain how each of the following events affects stock prices. If the effect is ambiguous, explain what additional information would be needed to reach a conclusion:

a. An expected decline in taxes, with no change in monetary policy;

b. An unexpected environmental deregulation as a way of promoting investment in energy sector.

Reference no: EM131728016

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