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Chapter 21: The IS-LM Model

The IS-LM model is a tool that shows the relationship between investments and savings and liquidity preference and the money supply. It is meant to illustrate the way in which the demand for goods and money are related to inflation, interest, and taxes.

Some of the basic principles this model accounts for are:

(EN: Much of this chapter seems vague and there's a great deal of emphasis on how to work the equations without much reference to what they mean, which all seems a bit academic to me, so there aren't many notes here.)