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Why is money supply constant in the IS-LM model?

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  • Why is money supply constant in the IS-LM model?


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Answer #1 | 23/12 2013 08:52
The money supply isn't constant in the model.
Positive: 100 %
Answer #2 | 23/12 2013 16:38
It is policy variable which can shift the LM curve, or monetary policy.
Positive: 100 %

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