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use the IS-LM model to answer this question. Suppose there is a simultaneous increase in government spending and reduction in money supply. Explain what effect
use the IS-LM model to answer this question. Suppose there is a simultaneous increase in government spending and reduction in money supply. Explain what effect this particular policy mix will have on ouput and interest rate. Base on your analysis, do we know with certainty what effect this policy mix will have on investment? Explain.
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Macroeconomics
Authors: N. Gregory Mankiw, William M. Scarth
5th Canadian Edition
1464168504, 978-1464168505
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