A given increase in government spending is more effective at increasing output in a country that a. has a flexible exchange rate .b. has higher interest rate to control the inflation . c. is closed to trade . d. has lower tariff If the government nationalises the banks owned by the private sector when the economy is operating at its long run potential level, this a. will shift the aggregate demand curve to the right because this policy action increases consumer confidence. b. is a supply side policy which will shift the aggregate supply curve to the right. . c. None of the options is correct . d. will shift the aggregate demand curve to the left because a government cannot run the banks as efficient as private sector experts