Explain how is fiscal expansion generally leads to income expansion in a normal IS-LM framework and I how to deal with the money that will increase, causing interest rates to rise and changing the composition of output in a normal IS-LM framework?

Explain how is fiscal expansion generally leads to income expansion in a normal IS-LM framework and I how to deal with the money that will increase, causing interest rates to rise and changing the composition of output in a normal IS-LM framework?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Explain how is fiscal expansion generally leads to
income expansion in a normal IS-LM framework
and I how to deal with the money that will
increase, causing interest rates to rise and
changing the composition of output in a normal
IS-LM framework?

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