Posted: December 17th, 2014
Macro
Order Description
You are required to produce a 2000 word essay on ONE of the following topics
1. Utilizing the IS-LM framework and assuming fixed prices illustrate and explain how a change in the money supply will affect the equilibrium level of income and rate of interest. Under what circumstances would it not affect the level of income?
2. With reference to the alternative theories of the consumption function explain why assuming current consumption is solely a function of current income is an inadequate explanation of consumption behaviour.
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