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Explain clearly In a two-period macroeconomic model, assume that leisure is unresponsive to interest rate changes. In such a scenario, what will be the effect

Explain clearly

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In a two-period macroeconomic model, assume that leisure is unresponsive to interest rate changes. In such a scenario, what will be the effect of an expansionary fiscal policy on the economy? What is the value of Keynesian multiplier in this case? What can you comment on the crowding-out effect? If we now introduce a money market, how should the monetary authorities react

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