Anonymous asked in Social ScienceEconomics · 1 month ago

How does money not plan any role in the real sector?

In my book it says that IS-LM model connects the real sector of the economy, where money does not play any role, to the monetary sector.

I really don't understand why money doesn't play any role

2 Answers

  • Oiy
    Lv 6
    1 month ago

    How has the LM come from? Your IS is the real sector, and it has to cut LM for equilibrium. Otherwise,it won‘t be any economy.

  • Liz
    Lv 6
    1 month ago

    You might be interested in reading the article on the website below which discusses money.

    Source(s): 9/15 A Balanced View of Money
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