In theory the effects on current output are ambiguous

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8)Explain whether a policy that results in a larger budget deficit in the current period can lead to a reduction in current output.
9)Suppose the central bank announces that it will pursue a monetary expansion in the current period and a monetary expansion in the future. Explain how the credibility of the central bank might influence the effectiveness of this monetary policy action and announcement of a future monetary policy action.
10)Explain whether a fiscal policy that causes an increase in current and future government spending can cause a reduction in current output.
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