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I. OTAL demand for goods and services has continued to rise sharply, placing excessive claims on our nation’s resources, Total spending increased 9 per cent in the year ending in the second quarter, and pulled up prices by 4 per cent. From mid-1965 to mid-1967, spending rose at a 7.5 per cent average annual rate and prices advanced at a 2.6 per cent rate. Excessive total demand in recent years has been fostered by a combination of very stimulative fiscal and monetary actions,

Fiscal Restraint, Total Demand and Monetary Policy