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When the Government reduced spending, balanced output rising from Y0 Y1 ' down interest rates haven't changed, goods market equilibrium at B (Yi ', i0). But when production is rising, the demand for currency translation reduced, this makes the interest rate reductions, to comb it reduced interest rates encourage investment increased vàlàm of the bridge back. At the moment the market of goods and currencies to re-establish balance in C (Y1, i1).
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