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According to Traditional Keynesian Analysis, Which Has a Greater Impact

question 19

Essay

According to traditional Keynesian analysis, which has a greater impact on aggregate demand, changing taxes or changing government expenditures? Why?


Definitions:

Real Assets

Real assets refer to physical or tangible assets such as land, buildings, gold, or commodities, which have intrinsic value.

Interest-Bearing Assets

Interest-bearing assets are financial assets that earn interest over time, such as savings accounts, bonds, or loans given to others.

Flexibility Option

An option that provides the holder with the ability to adapt or change an investment based on changing circumstances.

Inputs/Outputs

In economics and business, inputs refer to the resources used in the production process, while outputs are the goods or services produced.

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