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Learning Outcomes
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By the end of this chapter, you should understand:

  1. different forms of monetary policy
  2. a monetary target
  3. the IS and LM schedules
  4. equilibrium in both the output and money market
  5. the effect of a fiscal expansion
  6. the effect of a monetary expansion
  7. the mix of monetary and fiscal policy
  8. how expected future taxes affect current demand






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