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Q. What do you mean by Supply of money?

Supply of money

The supply of money is an exogenous variable in the IS-LM model

Money supply is entirely under the control of central bank in all models. Money supply is hence an exogenous variable which is not affected by either interest rates or GDP. We signify the money supply by MS.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M9577736

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