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QUESTION
s a significant increase in government spending, funded by borrowing NOT TAXING, affect the the Solow Growth Model graph? Which curve(s) move and why?...
How does a significant increase in government spending, funded by borrowing NOT TAXING, affect the the Solow Growth Model graph? Which curve(s) move and why? I specifically want to know how borrowing vs. taxing as a source of funding affects how the Solow Growth Model reacts to an increase in government spending.
