1. Why does this conclusion remain the same if the BP curve is steeper than the LM curve?\n \n2. Trace through the effects of a fall in exports (thereb
1. Why does this conclusion remain the same if the BP curve is steeper than the LM curve?
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2. Trace through the effects of a fall in exports (thereby shifting the BP curve)
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3. Show what will happen if there is (a) a rise in business confidence and a resulting increase in investment; (b) a rise in the demand for money balances (say for precautionary purposes).