4. why do economists discourage printing more currency during a crisis? (4 points)
additional currency would just erase the banks' and people's debts.
more legal currency would encourage counterfeiters.
there is not enough gold to "back" additional currency.
additional currency would lower its value and increase inflation.

Consider an economy where the government's budget is initially balanced. the production function, consumption function and investment function can be represented as follows y equals k to the power of alpha l to the power of 1 minus alpha end exponent c equals c subscript 0 plus b left parenthesis y minus t right parenthesis i equals i subscript 0 minus d r suppose that taxes increase. what happens to the equilibrium level of output?