DSE MACRO DOUBTS

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Re: DSE MACRO DOUBTS

SoniaKapoor
What's the ans finally?akshay,villain,vaibhav,viv?
MA Economics
DSE
2014-16
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Re: DSE MACRO DOUBTS

Arushi1
So this is what I am able to deduce from the above thread!

In terms of an IS-LM diagram, an increase in inflation, leads to, for a given level of nominal interest rates, a fall in the real interest rates and an increase in investment, which leads to an outwards shift in the IS.

Cool?
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