Making Life Easy with the IS-LM Model with Inflation Homework Help!
IS-LM model, which is also known as which is also known as Hicks-Hansen model is an integral part of macroeconomics. IS-LM stands for Investment Saving-Liquidity Preference Money Supply. This model graphically represents the relationship between interest rate and real output. Myhomeworkhelp.com is making the complex theories of economics easy for you since years and has earned the reputation of best service provider in this field. If you are stuck and do not know where you can get the IS-LM model with inflation assignment help, we are here to get you the maximum benefit in this regard. We are creating thousands of happy students every single day by our expert homework help service. We understand the difficulties the students face every day due to lack of time and proper guidance. Now when you are lost with The IS-LM Model with Inflation Homework Help, let is solve it for you.
IS-LM model at a glance
IS-LM model is one of the main tools of macroeconomics policy analysis. This model explains how the investors make decisions regarding investments with the available money and the interest that they will receive on it. When the amount invested equals the amount available to invest it is known as equilibrium. IS-LM model studies the impact of real interest rate on planned investment. In the short run, when the price level is fixed, this model explains how the national income changes. This also studies the changes in aggregate demand curve.
So we can see the IS and LM has two variables, income and the rate of interest. These two are together determined at the point of intersection of two curves. Thus, we can conclude as this model is based on:
- The investment and demand function.
- The amount of money.
- The money and demand function.
- Consumption function.
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