Suppose Congress and the president decide to increase government purchases today, say for national defense. Explain how

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Suppose Congress and the president decide to increase government purchases today, say for national defense. Explain how this affects the IS curve. How does your answer depend on the way in which the spending is financed and on the extent to which Ricardian equivalence holds?
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Macroeconomics

ISBN: 978-0393923902

3rd edition

Authors: Charles I. Jones

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