5. What effect does a temporary increase in government purchasesfor example, to fight a warhave on desired
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5. What effect does a temporary increase in government purchases—for example, to fight a war—have on desired consumption and desired national saving, for a constant level of output? What is the effect on desired national saving of a lump-sum tax increase? Why is the effect of a lump-sum tax increase controversial?
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Related Book For 
Macroeconomics
ISBN: 9781292446127
11th Edition
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore
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