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Impact of increase in tax rates with upward sloping BP curve using the IS/LM/BP model.

Using the IS/LM/BP model, elucidate the effect of each of the subsiquent changes. Suppose that the economy has an upward sloping BP curve which is flatter than its LM curve and a flexible exchange rate. An increase in tax rates.

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M921697

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