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The government has reasons to believe that there is over-investment in the economy, especially in the high tech industry. Fearing a bubble it decides to
The government has reasons to believe that there is over-investment in the economy, especially in the high tech industry. Fearing a "bubble" it decides to reduce investment in the economy, but also wants to keep output unchanged. What combination of fiscal and monetary policies can achieve this goal? Give your verbal answer and draw a diagram on paper to support your answer
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