Summarize the effects of a contractionary fiscal policy where the changes in government spending (G) and/or taxes (T) are changes upon output and income (Y), the demand for money (Md), the rate of interest (r), and investment spending (I).
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Q50: How much crowding out would be expected
Q51: Q52: Explain the impact upon the crowding-out effect Q53: Explain what is meant by a contractionary Q54: Describe the sequence of events that occurs Q56: Using the short-hand symbols Ms, r, I, Q57: Explain the only circumstance in which expansionary
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