An increase in government expenditure financed by borrowing (running a larger budget deficit) necessarily leads GDP to r

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answerhappygod
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An increase in government expenditure financed by borrowing (running a larger budget deficit) necessarily leads GDP to r

Post by answerhappygod »

An increase in government expenditure financed by borrowing
(running a larger budget deficit) necessarily leads GDP to rise by
more than the increase in governmental expenditure according to the
IS-LM model
True or false? Why?
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