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Could a fiscally conservative economist argue that the greater government spending would increase rather than reduce the cost of doing business in the U.S.? Explain.
Could a fiscally conservative economist argue that the greater government spending would increase rather than reduce the cost of doing business in the U.S.? Explain. (Hint: Consider the government's IBC and the effects of spending on national saving and the real interest rate assuming that the U.S. is a large open economy.)
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