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Business, 08.02.2021 18:50 cacaface311

Using either the Keynesian cross model or the market for real money balances (whichever one is appropriate), please illustrate what happens under the following circumstances. Then illustrate this using the IS-LM model. Finally, comment on what happens to income/output and the interest rate? a. The Fed buys bonds using open market operations.
b. According to the American Society of Civil Engineers (ASCE), America’s infrastructure gets a grade of D+. Feeling very ashamed, Congress decides to take action and allocates $3.5 trillion for construction projects.
c. The government raises income taxes.

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