4. Explain whether borrowing constraints increase or decrease the potency of fiscal policy to influence aggregate demand

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4. Explain whether borrowing constraints increase or decrease the potency of fiscal policy to influence aggregate demand in each of the following two cases.

a. A temporary tax cut.

b. An announced future tax cut.

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Macroeconomics

ISBN: 9781429218870

7th Edition

Authors: N. Gregory Mankiw

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Question Posted: Sep 27, 2024 09:00 AM

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4. Explain whether borrowing constraints increase or decrease the potency of fiscal policy to influence aggregate demand

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Macroeconomics

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