Say that investment increases by 20 for each interest rate


Say that investment increases by 20 for each interest rate drop of one percent. Say also that the expenditures multiplier is 3. If the money multiplier is 4, and each 5 unit change in the money supply changes the interest rate by 1 percent, what open market policy would you recommend to increase income by 240?

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Macroeconomics: Say that investment increases by 20 for each interest rate
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