Economics Freshman Course Unit 6 Part2 - Search Videos

Fiscal vs Monetary: Who Wins?

YouTubeAll About Economics with Michael

Fiscal vs Monetary: Who Wins?

Two ways to grow the economy: government spending or printing money. One of them quietly kills investment. Fiscal expansion: spending rises, IS shifts right, output rises. Money demand rises, so the interest rate goes up. Higher rates crush private investment. Government spending grows exactly at investment's expense. That is crowding out ...

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