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1/ What sort of shock describes the economic events materialising in the global econ- omy from mid-late 2008? 2/ . If government spending were increased,
1/ What sort of shock describes the economic events materialising in the global econ-
omy from mid-late 2008?
2/ . If government spending were increased, what would occur to interest rates according
to the theory presented in class?
3/ From 2008, how might monetary policy (as reflected in the OCR) have affected
the degree of crowding out resulting from fiscal policy (as reflected in government
expenditure)?
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