Assignment 1

Assignment 1

Introduction

The study is related to IS-LM model which is being studied through the article. In an article, it is found that with reference to monetary policy, the bank aims to stimulate the economy by increasing the money supply. Moreover, in relation to the fiscal policy, the government wants to stimulate the economy by increasing government spending which indicates that implementation of expansionary fiscal policy.

Discussion

In context of monetary policy that presents the aim of bank to stimulate the economy by raising the money supply, it can be said that if the money supply (MS) increases, we would be forced to ...