Consider the following statement: Fiscal policy that involves increases in government purchases always carries a risk of

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Consider the following statement: “Fiscal policy that involves increases in government purchases always carries a risk of crowding out private investment. Therefore, fiscal policy is not desirable because investment spending is preferable to government spending.” Do you agree with this statement? Briefly explain.
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Macroeconomics

ISBN: 9780132109994

1st Edition

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

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