Question 7: Country 3 is experiencing a recession. One fiscal policy tool to solve this is to increase government spending. What is the goal of the government in ADAS diagram? As a result of the increase in government spending, what shifts in the money market diagram? Draw this. What happens to interest rates as a result of this shift? As a result of this change in interest rates, what is the effect on AD? Explain Crowding Out. imi mm m