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Within the IS - LM model, show how income and the interest rate are affected by each of the following: a. A decline in government
Within the IS - LM model, show how income and the interest rate are affected by each of the following: a. A decline in government spending. b. An autonomous increase in investment spending.
c. A decline in taxes. d. A decline in the money supply. In each case, explain why the changes in income and the interest rate occur. (USE DIAGRAMS)
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