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Problem regarding the standard keynesian economy

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Reference no: EM131416177

Consider a standard Keynesian economy. Suppose the economy is in recession and governmentis trying to stimulate the economy. List monetary/fiscal policy in order of effectiveness(Most Effective > Moderately Effective > Least Effective). Assume c2b > i1. Also assumea one unit change in each policy variable.

A. G > T > M
B. M > G > T
C. G > M > T
D. M > T > G

Reference no: EM131416177

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