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Expansionary Fiscal Policy Assignment | Homework For You

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December 10th, 2019

Using the IS-LM model, explain how an expansionary fiscal policy would affect real output and the interest rate in a closed economy.

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Homework For You

Explain and show in your diagram how the Central Bank would react to this policy change if it wanted to keep the interest rate unchanged. You need to discuss detailed adjustment processes and the effects on the interest rate and real output in both cases. Get Economics homework help today

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