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Locked: Can someone help me with basic macroeconomics (IS-LM model)

  • Last Updated:
  • Mar 29th, 2008 10:50 pm
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[OP]
Deal Addict
Jun 12, 2005
2280 posts
19 upvotes

Can someone help me with basic macroeconomics (IS-LM model)

I am stuck on part of an assignment for the past few days,

I need to determine if the statements are true, false, or uncertain, with the use of a IS-LM model.

a) Does not matter if central bank uses real interest rate targeting or real output targeting to maintain price stability in both short run and long run when the shock originated from the money market.

b) When the government runs an expansionary fiscal policy, real interest rate targeting would lead to a smaller change in short-run level of investment than real output targeting.

c) The central bak should target real interest rate, not output, if it wants to minimize fluctuations in investment int he short run when autonomous investment falls.

I'm not really asking for someone to do it, but I would like to ask for help, whether is true/false/uncertain with a brief explanation why.
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4 replies
Sr. Member
Jun 4, 2006
635 posts
19 upvotes
Azxster wrote:
Mar 29th, 2008 2:15 pm

I'm not really asking for someone to do it, but I would like to ask for help, whether is true/false/uncertain with a brief explanation why.
Meanwhile, the professor asks:
I need to determine if the statements are true, false, or uncertain, with the use of a IS-LM model.
So you AREN'T really asking someone to do it, but you want us to tell you whether the question is true, false or uncertain.... :rolleyes:
[OP]
Deal Addict
Jun 12, 2005
2280 posts
19 upvotes
What was the point of your reply? :confused: RFD has changed so much...

I'm not asking for someone to do my homework. I'm asking for help. If (a) was true, great, I will figure out why and use my notes/textbook to prove it. If you provide a brief explanation, even better, I will know what concepts to discuss.
Sr. Member
Feb 11, 2007
567 posts
1 upvote
Can you explain real interest targeting and real output targeting? Our prof probably uses different terms.. I've never heard of such term this year (I'm taking ECO200/ECO202 at UofT)
Newbie
Oct 27, 2007
52 posts
^^ which campus are you at?

interest targeting: controlling r
real output targeting: controlling for Y

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