Output
0
-1
Consumption (Aggregate)
1
2 4 6 8 10
Tobin’s Q
-51—∙-------∙-------∙-------∙-------
2 4 6 8 10
2 4 6 8 10
Marginal Costs
51—■--------■--------■--------■--------
1
-1 —,-------,-------,-------,-------
2 4 6 8 10
Consumption (Ricardian Households) Relative Price (I/F)
2468 10 2468 10
Figure 6: Estimated Impulse Responses to a Monetary Policy Shock
49
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