Increases in the budget deficit are believed to cause reductions in investment.Based on your understanding of the IS-LM model,will a fiscal policy action that causes a reduction in the budget deficit cause an increase in investment? Explain.

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The Answer of Increases in the budget deficit are believed to cause reductions in investment.Based on your understanding of the IS-LM model,will a fiscal policy action that causes a reduction in the budget deficit cause an increase in investment? Explain.

Increases in the Budget Deficit Are Believed to Cause Reductions