Crowding out is an important topic

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Reference no: EM131076302

Crowding out is an important topic.

A. Use a graph of the market for loanable funds to show how the severity of crowding out depends on the slope of the supply curve.

B. Use a graph of the investment demand curve to demonstrate how the severity of crowding out depends on slope of the firms’ demand for investment goods.

C. In a couple of sentences, explain how expansionary fiscal policy can lead to lower rates of long-term economic growth.

Reference no: EM131076302

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