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Liquidity preference framework

Assignment Help Macroeconomics
Reference no: EM131239437

Using the liquidity preference framework, show why interest rates are procyclical (rising when the economy is expanding and falling during recessions).  A graph is required for this part of the question.  Make sure that you label the graph-axes, curves, and significant points-appropriately.  Make sure also that you include a few sentences by way of explanation.

Reference no: EM131239437

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