Question: Question 1 Suppose C = Cq + cyd (where Yd = Y - T), I = la - ir, G = Ga + gY, T

Question 1 Suppose C = Cq + cyd (where Yd = Y - T), I = la - ir, G = Ga + gY, T = Ta+ ty, K = Ka + tY, and L = La - ir. Calculate the government expenditure multiplier, the lump-sum tax multiplier, and the balanced budget multiplier. Explain how the efficacy of the fiscal policy is affected by the slope of the speculative demand for money

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