If the central bank in the preceding question had instead held the money supply constant and allowed

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If the central bank in the preceding question had instead held the money supply constant and allowed the interest rate to adjust, the change in aggregate demand resulting from the increase in government purchases would have been

a. larger.

b. the same.

c. smaller but still positive.

d. negative.

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Essentials Of Economics

ISBN: 9780357723166

10th Edition

Authors: N. Gregory Mankiw

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Question Posted: Feb 26, 2024 03:01 AM

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If the central bank in the preceding question had instead held the money supply constant and allowed

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Essentials Of Economics

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