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Business, 18.11.2019 23:31 arianasg06

The new classical critique of activist fiscal policy is theoretically different from the crowding-out critique. crowding-out occurs when private spending in response to government spending. under the new classical critique, increased government spending leads people to their current savings in order to pay for higher taxes in the future, which increases the of loanable funds.

1) decreases; decrease; supply
2) increases; increase; demand
3) decreases; decrease; demand
4) decreases; increase; supply

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