Suppose the government cuts income taxes show the islm, Business Economics

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Suppose the government cuts income taxes show the islm

Suppose the government cuts income taxes. Show the IS/LM model the impact of the tax cut under two assumptions. (1) Government keeps interest rates constant through an accommodating monetary policy. (2) The money stock remains unchanged. Explain the difference in results.

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Business Economics: Suppose the government cuts income taxes show the islm

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