Question: If money demand is unaffected by changes in the interest rate, what effect will a rise in government spending have on the position of the

If money demand is unaffected by changes in the interest rate, what effect will a rise in government spending have on the position of the aggregate demand curve?

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No effect The LM curve would be vertical in this case meaning that a ... View full answer

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If money demand is unaffected by changes in the interest rate, what effect will a rise in government spending have on the position of the aggregate demand curve?

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