Time to come out of retirement hehe

?

Thanks

And do you mean in your third sentence that the BoP surplus would increase? As there was a BoP surplus in the first place?

Got it, thanks a lot. All those concepts make perfect sense. However, I'm really lost as to the math side. I see that Money Supply (Ms/P) = Y - r for LM curve derivation purposes, but I'm really not sure how to calculate the increase's effect on all those variables using the limited variables I'm given.

Thanks

I did :( but I keep getting into snags.

I think I've managed to graph them correctly.. is LM curve horizontal, indicating a Keynsian case? And since in my graph, the IS-LM intersection is below BP curve, I think that is a BOP deficit?

I'm unsure how to reflect the money supply change on LM for b, however.

Thanks all

thanks