A fiscal expansion (e.g.a tax cut)will result in an increase in income,an increase in money demand,and an increase in the equilibrium interest rate in financial markets.Explain what happens to the position of the LM curve as policy makers pursue expansionary fiscal policy.

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The Answer of A fiscal expansion (e.g.a tax cut)will result in an increase in income,an increase in money demand,and an increase in the equilibrium interest rate in financial markets.Explain what happens to the position of the LM curve as policy makers pursue expansionary fiscal policy.

A Fiscal Expansion (E