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What do you mean by ISLM Model?
ISLM model is termed to a macroeconomic tool that portrays the relation between output and interest rates, in the assets market basically. This model can be interpreted in two ways- firstly, it illustrates why the collective demand curve shifts and secondly, the model describes changes occuring in national income right when the price level is rigid. This was just the basic idea of ISLM model but one needs to have an in-depth study of this topic to understand it all.
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