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Policymakers are contemplating undertaking either an increase in government spending or an increase in the money supply. Either policy is forecast to have the same
Policymakers are contemplating undertaking either an increase in government spending or an increase in the money supply. Either policy is forecast to have the same impact on income in the short run. Use the IS-LM model to compare the short-run impact on consumption and investment of the two policy alternatives. Please clearly explain your conclusion (you may also want to use a graph for this question).
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