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The figure given below depicts the IS-LM-FE model with floating exchange rates. The shift of the FE curve from FE0 to FE1 was caused by:
Appropriations Bill
Legislation passed by Congress that provides funding for specific federal government departments, agencies, and programs.
Authorization Bills
Legislation that grants permission, typically from a legislative body, for government spending in specific areas or for specific projects.
Budget Resolution
A congressional decision that sets a framework for federal budgeting and spending, outlining targets for revenues, expenditures, and other fiscal measures.
Congressional Earmark
Provisions within legislation that direct approved funds to be spent on specific projects or for certain purposes, often critiqued for being non-competitive.
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