A monetary expansion shits the LM c

A monetary expansion shits the LM curve to LMO, with ISO the equilibrium moves from point 1 to point 4. At point 4 the interest rate is lower causing the exchange rate to depreciate. The central bank
attempts to maintain the exchange rate at eO by selling foreign currency (buying domestic currency). The intervention of central bank reduces the money supply, the LM curve returns to its original position at point1. Under a fixed exchange rate regime monetary policy has no effect on output.

Kết quả (Anh) 1:

A monetary expansion shits the LM curve to the LMO, with ISO the equilibrium moves from point 1 to point 4. At point 3 the interest rate is lower causing the exchange rate to depreciate. The central bankattempts to maintain the exchange rate at the waist by selling foreign currency (buying domestic currency). The intervention of central bank reduces the money supply, the LM curve returns to its original position at point1. Under a fixed exchange rate regime monetary policy has no effect on output.

Kết quả (Anh) 2:

A Monetary expansion the LM curve to LMO shits, with the equilibrium moves from point ISO 1 to point 4. At point 4 the interest rate is lower exchange rate to depreciate Causing the. The central bank
exchange rate ATTEMPTS to Maintain the waist at the foreign currency by selling (buying Domestic currency). The intervention of central bank reduces the money supply, the LM curve returns to original position at point1 nó. Under a fixed exchange rate regime has no effect on Monetary policy output.