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.

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The Answer of 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.

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