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An increase in the policy rate reduces aggregate demand because: Select one: O a. It increases the income earned by savers. O b. None of

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An increase in the policy rate reduces aggregate demand because: Select one: O a. It increases the income earned by savers. O b. None of the listed answers is correct. O G. It reduces the size of the multiplier. O d. It depresses asset prices and makes people feel less wealthy. O e. It lowers the value of the domestic currency in terms of overseas currencies, encouraging an increase in net exports

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