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1- Explain and illustrate graphically the following: a- Tools of fiscal policy b- Demand-side fiscal policy c- Supply-side fiscal policy d- Crowding out effect (complete
1- Explain and illustrate graphically the following: a- Tools of fiscal policy b- Demand-side fiscal policy c- Supply-side fiscal policy d- Crowding out effect (complete and incomplete) 2- Explain what is meant by the marginal tax rate and how it is likely to affect consumption and investment. an arithmetical example to illustrate the difference between the marginal and average tax rates. 3- Explain why would the government decide to implement an expansionary fiscal policy. Explain and illustrate graphically the impact of an expansionary fiscal policy on the aggregate demand curve, total expenditure components, price and real GDP. 4- Explain the three main functions of money in the economy
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