John Tang

Budget: $15

Solved!

The government nows that the economy will correct in 3 years. It also knows that firms are very sensitive to changes in the interest. Do you recommend that they hold off on a stabilization policy or pursue an increased government spending policy that will take 1.5 years to come into play =?

Answer

Tutor Gautham Shiyakino

If firms are very sensitive to changes in the interest rate, crowding out becomes...


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