Assume that investments is highly insensitvie to the, Ask an Expert

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Assume that investments is highly insensitvie to the interest rate. Explain what effects are on interest and income of an increase in government expenditure (G). Which compent(S) of aggregrate demand are crowded out (i.e., reduce)? Use IS-LM diagram to support your answer.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92198262

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