Essay Question. Since the new administration has taken office, the following macro policies have been implemented...

Essay Question. Since the new administration has taken office, the following macro policies have been implemented by Congress and the Federal Reserve:

Income taxes on individuals have been lowered

Corporate taxes have been lowered

The Federal Reserve has raised interest rates

The government has significantly increased spending, much on the military

Using your knowledge of the IS-LM-BOP model and/or other ideas in macroeconomics, analyze what you think the future holds for the US economy. Explain the net effect on major economic indicators in the US. (Use IS-LM-BOP graphs).

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Rahul Sunny answered 1 year ago

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