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    Macroeconomics Study Set 11
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    Exam 5: Goods and Financial Marketsthe Is-Lm Model
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    Explain in Detail What Effect a Reduction in Government Spending
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Explain in Detail What Effect a Reduction in Government Spending

Question 59

Question 59

Essay

Explain in detail what effect a reduction in government spending will have on: (1)the LM curve; and (2)the IS curve.

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A reduction in taxes will cause an incre...

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