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Consider a Keynesian model but where investment (just like consumption) is increasing in aggregateincome, e.g., because investment depends on business cash flow.Now that investment depends
Consider a Keynesian model but where investment (just like consumption) is increasing in aggregateincome, e.g., because investment depends on business cash flow.Now that investment depends on aggregate income, a fiscal stimulus has more effect on equilibriumoutput.Answer true, false, or uncertain. Please briefly explain your answer.
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