Economics Homework Solutions
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general economics question

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4) Suppose the government proposes to cut taxes while maintaining the
current level of government expenditures. To finance this deficit, it may either
        a) sell bonds to the public,  or,  b) print new money (via Federal  reserve cooperation).

-What are the likely effects of each of these alternatives on each of the  following?
      a) interest rates
      b) consumer spending
      c) business investment
      d)aggregate demand.

Would Keynesians , monetarists, and supply-siders give the same answers?



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