Re: DSE 2009

Posted by Ayushya Kaul on Jun 22, 2013; 12:16pm
URL: http://discussion-forum.276.s1.nabble.com/DSE-2009-tp5282581p7582729.html

@ Duck: Slightly confused here.
Q.17) of DSE 2011 asked if the LM curve shifts when there is an increase in expected rate of inflation.
The answere is that it remains unchanged.

So how can we say that an increase in equilibrium income and decrease in interest rate has come about from an rightward shift of LM curve for Q17 in DSE 2009?

So basically, why were are considering LM curve as a function of 'i' in 2011 and a function of 'r' in 2009?