Answered: 3) Draw the IS-MP framework and show…

3) Draw the IS-MP framework and show the effect of a rise in liquidity risk in the economy. Show up happens to: a) The real interest rate -> b) The output gap c) Actual GDP d) Potential GDP-

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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3) Draw the IS-MP framework and show the effect of a rise in liquidity risk in the economy. Show up happens to: a) The real interest rate -> b) The output gap c) Actual GDP d) Potential GDP-

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