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Which model would monetary policy

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Using the IS - LM framework, in which model would monetary policy be more effective (in terms of increasing the level of income)? THINK IT THROUGH

A. I = f (i)             S = f (Y)         G = Go

B. I = f (i)             S = f (Y)         G = Go - g (i)

Using the IS - LM framework, in which model would monetary policy produce larger income changes (per unit of monetary stimulus)? THINK IT THROUGH

  1. Tx = Txo
  2. Tx = To + tY               t > 0

Reference no: EM131767368

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