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Suppose That a Bond-Financed Deficit Shifts the IS Curve to the Right,taking

question 74

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Suppose that a bond-financed deficit shifts the IS curve to the right,taking IS-LM equilibrium "northeast" from point A to point B.If government bonds are considered net wealth by the public sector,then by the portfolio theory of asset-holding there is an excess ________ money at point B because the LM curve has shifted ________ with increased wealth,and thus the fiscal policy turns out to be ________ expansionary than without the wealth effect.


Definitions:

Hegemonizing

The act or process of establishing dominance or leadership, especially by one state or social group over others.

Queer Theory

An interdisciplinary approach that challenges traditional ideas about sexuality and gender, emphasizing the fluidity and socially constructed nature of these concepts.

Marginalized

A condition in which an individual or group is placed in a lower or peripheral edge of society, often leading to reduced access to resources and opportunities.

Non-reproductive

Pertaining to actions, processes, or behaviors not directly related to reproduction or the production of offspring.

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