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Money Multipliers and the Slopes of IS and LM: Comment

Richard Cebula ()

MPRA Paper from University Library of Munich, Germany

Abstract: This theoretical model investigates the implications of the slopes of LM curves and positively sloped IS curves for the size of policy multipliers. It is shown that the effectiveness of monetary policy is greater if the slope of the IS curve is greater. It also is shown that fiscal policy effectiveness is greater the flatter the LM curve is.

Keywords: positively sloped IS curve; monetary policy effectiveness; fiscal policy effectiveness; public finance (search for similar items in EconPapers)
JEL-codes: E51 E52 G18 (search for similar items in EconPapers)
Date: 1984-01-30
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Published in Southern Economic Journal 3.51(1985): pp. 906-908

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