Explain how the given affects the is curve

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Question: Government purchases: Suppose Congress and the president decide to increase government purchases today, say for national defense. Explain how this affects the IS curve. How does your answer depend on the way in which the spending is financed and on the extent to which Ricardian equivalence holds? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132118767

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