Previous Page Next Page Question 48 (10 points) The US economy experienced both public health and economic crises during 2020. Suppose that in response the
Previous Page Next Page Question 48 (10 points) The US economy experienced both public health and economic crises during 2020. Suppose that in response the US government decided to increase government spending. a) Using diagrams, carefully explain whether or not this policy would have had a lasting effect on aggregate demand under a flexible exchange rate regime. b) What is the effect of this policy on the interest rate in the long run? Explain your answer. Paragraph BIUVA/ EVEVI +
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