How would the level of aggregate demand be affected by a rise in the interest rate in

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How would the level of aggregate demand be affected by a rise in the interest rate in the Keynesian theory? Which components would be affected most strongly?

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Macroeconomics Theories and Policies

ISBN: 978-0132831529

10th edition

Authors: Richard T. Froyen

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Question Posted: May 24, 2016 06:44 AM

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How would the level of aggregate demand be affected by a rise in the interest rate in

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An increase in the interest rate would cause aggregate demand to fall i...View the full answer

Macroeconomics Theories and Policies

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