Discuss how and why the effectiveness of fiscal policy


Discuss how and why the effectiveness of fiscal policy depends upon the slope of the LM curve. Hint: Discuss how the behavioral sensitivities (c1, and c2) determines the LM slope, and how changing c1, and c2 influences the fiscal policy effectiveness.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Discuss how and why the effectiveness of fiscal policy
Reference No:- TGS01473903

Expected delivery within 24 Hours