Increases in the budget deficit are believed to cause
Increases in the budget deficit are believed to cause reductions in investment. Based on your understanding of the IS-LM model, will a fiscal policy action that causes a reduction in the budget deficit cause an increase in investment? Explain.
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use the is-lm model to answer this questionsuppose there is a simultaneous increase in government spending and
increases in the budget deficit are believed to cause reductions in investment based on your understanding of the is-lm
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