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How to use the combination of expansionary fiscal policy and monetary policy to increase national income and stabilize interest rates?
At the same time, adopting expansionary fiscal and monetary policies can increase national income and stabilize interest rates. You can tell by the IS-LM curve. Using expansionary monetary policy, when the national income increases and the interest rate rises, the LM curve shifts to the right; When the national income increases and the interest rate decreases, the expansionary fiscal policy is used to shift the IS curve to the right. The two * * * work together to stabilize interest rates. Support originality and resist piracy. Remember to adopt