Expansionary policies are designed to stimulate the economy by increasing aggregate output. Explain why expansionary fiscal policy

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Expansionary policies are designed to stimulate the economy by increasing aggregate output. Explain why expansionary fiscal policy and expansionary monetary policy have opposite effects on the interest rate despite having the same goal of increasing aggregate output. Illustrate your answer with graphs of the money market.

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Principles Of Economics

ISBN: 9780593183540

10th Edition

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

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