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According to the ISLM model, when the central bank decreases the money supply, which curve
shifts? To the right or to the left? As a result, what happens to the interest rate, income,
consumption, and investment when the central bank decreases the money supply?

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According to the ISLM model, when the central bank decreases the mone.pdf

  • 1. According to the ISLM model, when the central bank decreases the money supply, which curve shifts? To the right or to the left? As a result, what happens to the interest rate, income, consumption, and investment when the central bank decreases the money supply?