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*In the budget of fiscal year 2020-21, finance minister proposes to increase the tax-free income limit for individual taxpayers to $300000 from...
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Question

*In the budget of fiscal year 2020-21, finance minister proposes to

increase the tax-free income limit for individual taxpayers to $300000 from $250000 . What will be its effects on interest rate and income level of Bangladesh economy? Explain with the help of IS-LM model.


* Check the effectiveness of fiscal or monetary policy under Classical supply assumption

Step-by-step answer

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