1. Is it possible for the aggregate expenditure line to be steeper than the 45 line in...
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1. Is it possible for the aggregate expenditure line to be steeper than the 45° line in the presence of financial accelerator effects?
2. What has happened to the interest rate on borrowing (rb) and the interest rate on saving (rs) in the two scenarios shown in Figure (b)?
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1 The slope of the E line is the marginal propensity to consume domestically produced goods and serv...View the full answer
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