Macroeconomics 12th Edition by Rudiger Dornbusch, Stanley Fischer ,Richard Startz

تمرين 7

Consider two alternative programs for contraction. One is the removal of an investment subsidy; the other is a rise in income tax rates. Use the IS-LM model and the investment schedule, as shown in Figure 12-9, to discuss the impact of these alternative policies on income, interest rates, and investment.