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Explain how 'high government spending crowds out private spending'. ( 10 marks) Keynes proposed that consumption depends on current income. Briefly discuss three other determinants
- Explain how 'high government spending crowds out private spending'. ( 10 marks)
- Keynes proposed that consumption depends on current income. Briefly discuss three other determinants of consumption. (10 )
- Briefly discuss three policy rules for monetary policy that a central bank such as the Fed might follow. Why may these policy rules be superior to discretionary policy?
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Introduction to Econometrics
Authors: James H. Stock, Mark W. Watson
3rd edition
133595420, 978-0138009007, 138009007, 978-0133486872, 133486877, 978-0133595420
