Briefly explain whether the following statement is true or false An increase in government expenditure financed by borro
Posted: Thu May 26, 2022 7:29 am
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.
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.