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13) Suggest a policy mix to achieve each of the following objectives. For each of the following, make sure to illustrate using the IS-LM model.
13) Suggest a policy mix to achieve each of the following objectives. For each of the following, make sure to illustrate using the IS-LM model.
a.Increase Y while keeping interest rate (r) constant
b.Decrease the fiscal deficit while keeping Y constant. What happens to r? What happens to investment?
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