If the president and parliament agree on a policy to increase the budget deficit by increasing government expenditure while holding taxes constant: 1. What impact will this expansionary fiscal policy have on output and interest rates? 2. Is the shift an IS or LM or both
If the president and parliament agree on a policy to increase the budget deficit by increasing government expenditure while holding taxes constant: 1. What impact will this expansionary fiscal policy have on output and interest rates? 2. Is the shift an IS or LM or both
Chapter24: Fiscal Policy
Section: Chapter Questions
Problem 15P
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If the president and parliament agree on a policy to increase the budget deficit by increasing government expenditure while holding taxes constant:
1. What impact will this expansionary fiscal policy have on output and interest rates?
2. Is the shift an IS or LM or both
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