Abstract
In his recent article, Christ presents a standard, six-equation, linear IS-L\it m-odel in which a government budget restraint is incorporated (Christ 1968). One consequence of the restraint is that the number of independent government policy variables is one less than the total number of government policy variables; that is, one of the government policy variables becomes a dependent (endogenous) variable. Another consequence is that "the model is static if the government budget restraint (equation [6]) is ignored but becomes dynamic when it is included" (Christ 1968, p. 55). Two policies are analyzed for the case where the high-pow-ered inoney stock H is the dependent (policy) variable. For each policy, the longrun equilibrium income is found by obtaining and solving a first-order, linear, difference equation with constant coefficients. In both cases, the result i s: g U (10)
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