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Unformatted text preview: III. E XAMPLES A. A Massive Fall in Planned Expenditure 1. The initial situation 2. The shock 3. The dynamics of the economy 4. What happens when there is a rebound in planned expenditure 5. How seriously should we take this? B. The Importance of Using Rather than Saving Your Ammunition 1. The initial situation 2. What happens if the central bank saves its ammunition 3. How the central bank can avoid this outcome...
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- Spring '12