Briefly explain whether the following statement is true or false An increase in government expenditure financed by borro

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answerhappygod
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Briefly explain whether the following statement is true or false An increase in government expenditure financed by borro

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Briefly explain whether the following statement is true or false
An increase in government expenditure financed by borrowing (running a larger
budget deficit) necessarily leads GDP to rise by more than the increase in gov-
ernment expenditure according to the IS-LM model.
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