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3. In explaining the 2003 bill to cut taxes, President Bush is quoted as saying, "When people have more money, they can spend it on goods and services." a. In the IS-LM model, will a tax cut change the money supply in the economy? Does a change in the money supply shift the IS or the LM curve? b. In the IS-LM model, does a tax cut shift the IS or the LM curve? Demonstrate this using a graph. c. Based on your answers in a and b, how can you reconcile the president's statement with economics? Can you suggest how his statement could be modified to be consistent with the IS-LM model?
a identify three economic variables that create differences in market interest rates on assets andor liabilities. b for
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the pizza company is considering entering the marketplace in your community. use the information from the pizza company
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question suppose we can divide all the goods produced by an economy into two types consumption goods and capital
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