If the central bank in the preceding question instead holds, Ask an Expert

Economics

If the central bank in the preceding question instead holds the money supply constant and allows the interest rate to adjust, the change in aggregate demand resulting from the increase in government purchases will be

a) larger.

b) the same.

c) smaller but still positive.

d) negative.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92188306

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