In which of the following circumstances is expansionary fiscal policy more likely to lead to a short-run

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In which of the following circumstances is expansionary fiscal policy more likely to lead to a short-run increase in investment? Explain.
a. When the investment accelerator is large or when it is small?
b. When the interest sensitivity of investment is large or when it is small?

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Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

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