IS/LM

IS/LM Model

IS/LM Model

Introduction

The IS-LM (Investment-Saving/ Liquidity-Monetary) curve is shows that the points are consisting on the equilibrium in demand and supply for the money (Hicks, 1980).). When the LM curve is the moving upwards then it shows the increase of income given the constant supply of money, in order to keep the endless money demand. In this paper, I will explain the impact of exchange rate stability on investors and countries. I later part of this paper I will explain this issue by using IS/LM model.

Discussion

US government is mandating the fixed exchange rate for their currency exchange value or currency ...