Question: use the L-M model to answer this questions. suppose there is a simultaneous increase in government spending and reduction in the money supply. Explain what
use the L-M model to answer this questions. suppose there is a simultaneous increase in government spending and reduction in the money supply. Explain what effects this particular policy mix will have on output and the interest rate. based on your analysis, do we know with certainty what effect this policy mix will have on investment. explain?
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