Concept Introduction:
Seigniorage: It is an act of generating revenue from printing money by the central bank of the country. It is the profit earned by the government. There is always a difference between the face value of the printed money and the cost incurred in printing it. Such difference generates profit.
Investment Spending: All those spending’s which are done on physical capital which means that only expenses that increases an economy’s level of physical capital is known as investment spending.
Crowding Out: Fiscal and monetary expansion leads to an increase in the real
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