Consider the IS-LM model. The government wants to do fiscal policy either by raising government spending or lowering taxes. What will be the difference between these two approaches? O One will shift IS: the other will shift LM. One will raise consumption and the other will raise economic investment. O One will shift IS rightward; the other will shift IS leftward. O One is direct and the other is indirect.

Consider the IS-LM model. The government wants to do fiscal policy either by raising government spending or lowering taxes. What will be the difference between these two approaches? O One will shift IS: the other will shift LM. One will raise consumption and the other will raise economic investment. O One will shift IS rightward; the other will shift IS leftward. O One is direct and the other is indirect.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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