1.A $1 increase in government spending will raise equilibrium income more than a $1 tax cut will,...

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1.A $1 increase in government spending will raise equilibrium income more than a $1 tax cut will, yet both have the same impact on the budget deficit. So if we care about the budget deficit, the best way to stimulate the economy is through increases in spending, not cuts in taxes. Comment.

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Principles Of Economics

ISBN: 9780135161104

13th Edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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