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According to Keynesian IS-LM model, what is the effect of each of the following on output, the real interest rate, umemployment and the price level? Distinguish between short run and long run. a) Financial deregulation allows banks to pay a higher interest rate on checking accounts. b) The...

According to Keynesian IS-LM model, what is the effect of each of the following on output, the real interest rate, umemployment and the price level? Distinguish between short run and long run. a) Increased tax incentives for investment ( the tax breaks for investment are offset by lumpsum tax...

According to Keynesian IS-LM model, what is the effect of each of the following on output, the real interest rate, umemployment and the price level? Distinguish between short run and long run. a) Increased tax incentives for investment ( the tax breaks for investment are offset by lumpsum...