9. Suppose that the world interest rate rises. What happens to the position of the aggregate-demand curve

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9. Suppose that the world interest rate rises. What happens to the position of the aggregate-demand curve in Canada? Assume that the Bank of Canada allows the exchange rate to be flexible. How does your answer change if you assume that the Bank of Canada maintains a fixed exchange rate? Illustrate your answer with diagrams.

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Principles Of Macroeconomics

ISBN: 9780176591977

7th Canadian Edition

Authors: N. Mankiw, Ronald Kneebone, Kenneth McKenzie

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