Suppose the government increases its purchases by 1200, Ask an Expert

Economics

Suppose the government increases its purchases by $1,200 while holding the money supply constant. The change in aggregate demand resulting from an increase in government purchases if the government allows interest rates to adjust (as compared to the change if it were to hold them constant) will be

larger.

the same.

smaller but still positive.

negative.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91343691

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