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May 2010 Blog Posts (1)

Budget Deficit and Interest Rate

Recently I came across a problem which questioned how a country can increase budget deficit (through Gov. Spending) without increasing the interest rate. It asked its readers to solve it using IS-LM model and figure out two ways of achieving it. Surely a pertinent question in today’s scenario when central banks have pumped in lot of…
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Added by Bhasker Siddharth on May 10, 2010 at 9:00am — No Comments

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