If Investment = f(r*) a.  Explain with pictures how it affects the balance of Supply/Saving and Investment Demand in the event of Fiscal policy, namely by decreasing state spending and increasing taxes. b.  Explain with pictures how it affects the balance of Supply/Saving and Investment Demand in the event of Fiscal policy, namely by decreasing state spending and increasing taxes if it happens overseas

Q: f social security payments to retirees increase, AD will increase and raise Y*

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Q: Based on the Krugman text and your reader articles, what position do you take on the current fiscal…

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Q: a. Based on the macro workhorse model, explain the 'journey' (mechanism) how an initial…

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Q: Describe the shortcomings of Fiscal Policy. Be as thorough as possible.

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Q: What is meant by discretionary fiscal policy? Give an example of how the government can use fiscal…

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