Question: 5 What effect does a temporary increase in government purchases-for example, to fight a war-have on desired consumption and desired national saving, for a constant
5 What effect does a temporary increase in government purchases-for example, to fight a war-have on desired consumption and desired national saving, for a constant level of output? What is the effect on desired national saving of a lump-sum tax increase? Why is the effect of a lump-sum tax increase controversial?
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