leads GDP to rise by more than the increase in gov- ernment expenditure according to the IS-LM model. 2. The Ricardian e
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leads GDP to rise by more than the increase in gov- ernment expenditure according to the IS-LM model. 2. The Ricardian e
leads GDP to rise by more than the increase in gov- ernment expenditure according to the IS-LM model. 2. The Ricardian equivalence proposition implies that a deficit-financed tax cut will have no effect on national saving. 3. In the Solow model it is possible the