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Rationalize the denominator and simplify. Assume that all variables represent positive real numbers.
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Fiscal Policy
Government strategies concerning spending and taxation to influence the economy, aiming to control inflation, unemployment, and encourage economic growth.
Government Spending
The total of all public expenditures made by government agencies, including investments and consumption.
Interest Rates
The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid to lenders over a specified period.
Government Failure
Occurs when government intervention in the economy causes an inefficient allocation of resources and leads to a net loss of economic welfare.
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