11. Assume the economy is in a recession. Explain how each of the following policies would affect...

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11. Assume the economy is in a recession. Explain how each of the following policies would affect consumption and investment. In each case, indicate any direct effects, any effects resulting from changes in total output, any effects resulting from changes in the interest rate, and the overall effect. If there are conflicting effects making the answer ambiguous, say so.

a. an increase in government spending

b. a reduction in taxes

c. an expansion of the money supply

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