Use the IS-LM Model to Answer This Question

question 69

Essay

Use the IS-LM model to answer this question.Suppose there is a simultaneous increase in government spending and increase in the money supply.Explain what effect this particular policy mix will have on output and the interest rate.Based on your analysis,do we know with certainty what effect this policy mix will have on investment? Explain.

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Definitions:

Victimless Crimes

Legal offenses that do not directly harm another individual, often involving consensual activities.

Forgery

The act of falsely making or altering a writing with the intent to defraud, such as signing another person’s name to a check without authorization.

Fraudulently

Acting with intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Marginal Cost

The supplementary expense resulted from manufacturing one extra unit of a good or service.