Solved: Explain how the purchases affects the is curve, Macroeconomics

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Explain how the purchases affects the is curve

Problem

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 should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Explain how the purchases affects the is curve

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