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- Country Level Economics: Policies, Institutions, and Macroeconomic Performance | Online Course Support
This year, country T held politically sensitive parliamentary elections and the government of the incumbent ruling party temporarily increased public expenditure to enhance its popularity. The government financed the additional expenditure by selling more bonds. Assuming that Ms, P, P*, Y*, and T were exogenously given, what kind of impact must this policy have had on the LM curve in country T?
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