Consider both a shift in the is curve and a shift in the lm


"In order to keep national income stable, the central bank has to purchase government securities whenever interest rates increase." Comment on this statement with the help of an IS-LM diagram and explain the adjustment process. Consider both a shift in the IS curve and a shift in the LM curve. Note: let the LM curve shift because of an increase in money demand.

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Business Economics: Consider both a shift in the is curve and a shift in the lm
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