6. Suppose government spending increases in a closed economy. Would the effect on aggregate demand be larger

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6. Suppose government spending increases in a closed economy. Would the effect on aggregate demand be larger

(a) if the Bank of Canada took no action in response or

(b) if the Bank was committed to maintaining a fixed interest rate? Explain.

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Principles Of Macroeconomics

ISBN: 9780176591977

7th Canadian Edition

Authors: N. Mankiw, Ronald Kneebone, Kenneth McKenzie

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