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Economic Analysis of Social Issues 1st Edition by Alan Grant
Edition 1ISBN: 978-0134098371Economic Analysis of Social Issues 1st Edition by Alan Grant
Edition 1ISBN: 978-0134098371 Exercise 49
Explain how government fiscal stimulus may crowd out private spending in each of the following cases:
a. Government borrows money to buy a new Air Force One.
b. Government uses tax revenue to expand bridge-building programs.
c. Government cuts individual income taxes and borrows money to finance the deficit that results.
a. Government borrows money to buy a new Air Force One.
b. Government uses tax revenue to expand bridge-building programs.
c. Government cuts individual income taxes and borrows money to finance the deficit that results.
Explanation
Verified
Verified
Crowding out effect:
Crowding out effec...
Economic Analysis of Social Issues 1st Edition by Alan Grant
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