The LM curve will shift to the
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DSE 2005 Question 24: IS-LM model
Answer and worked solution
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IS-LM model has come up 137 times in 7 exams since 2004.
What this question tests
This question is on Equilibrium and shifts in IS-LM, part of IS-LM model in Macroeconomics.
Solving for income and the interest rate and tracing what shifts each curve.
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Question from the DSE 2005 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.