A tax cut with an increase in money supply. comments on the, Ask an Expert

Economics

If investment is very interest inelastic,then most of an income tax rate cut will be crowded out,therefore the Reserve Bank should always supplement a tax cut with an increase in money supply. comments on the statement with the help of an IS-LM diagram and describe the adjustment process.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M948094

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