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Author Question: Suppose policy makers want to increase Y and increase NX. Which of the following policies would most ... (Read 66 times)

ENagel

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on: Jun 30, 2018
Suppose policy makers want to increase Y and increase NX. Which of the following policies would most likely achieve this?
 
  A) an increase in government spending
  B) a real depreciation
  C) a reduction in taxes and an increase in the real exchange rate
  D) an increase in the real exchange rate

Question 2

Use the IS-LM-PC model to illustrate how the economy adjusts to an increase in taxes both in the short run and in the medium run.
 
  What will be an ideal response?


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dyrone

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

Refer to figure 9-4 of the textbook.


ENagel

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

kjohnson

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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