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Business, 11.03.2021 14:00 mrashrafkotkaat

Use the IS-LM model to answer this question. Suppose there is a simultaneous increase in government spending and increase in the money supply. First, define the policy mix. (e. g. contractionary/expansionary fiscal/monetary policy). Second, explain the effects of that policy mix on output and the interest rate. Finally, explain the effects of the policy mix on investment. Do you suggest that a government should use that policy mix in order to increase investment? If not, which policy/policy mix would you suggest

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Use the IS-LM model to answer this question. Suppose there is a simultaneous increase in government...
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