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    Macroeconomics Policy and Practice
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    Exam 9: The Is Curve
  5. Question
    The IS Model Implies That a Dollar of Government Spending
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The IS Model Implies That a Dollar of Government Spending

Question 24

Question 24

Essay

The IS model implies that a dollar of government spending has a larger impact on equilibrium output than does a dollar of taxes.Explain.

Correct Answer:

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In the IS equation,government purchases ...

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