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Business, 04.03.2020 02:59 mxddisonxo

Suppose that in an effort to shift the aggregate demand curve to the right, the government increases spending without changing taxes, thereby increasing real GDP. To the extent that increased government borrowing causes interest rates to , the increase in aggregate demand will be than policymakers expected when formulating the magnitude of their fiscal stimulus. This is known as the effect.

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Suppose that in an effort to shift the aggregate demand curve to the right, the government increases...

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