statements is true or false. 1. An increase in government expenditure financed by borrowing (running a larger budget def
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statements is true or false. 1. An increase in government expenditure financed by borrowing (running a larger budget def
statements is true or false. 1. 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.