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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Effects of Simultaneous Increase in Government Spending and Money Supply Reduction on Output and Interest Rates using the ISLM Model Analysis In the I... View the full answer