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To support consumer spending during the Covid-19 pandemic the Canadian government made payments to households under the Canada Emergency Response Benefit (CERB) program. a) Using

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To support consumer spending during the Covid-19 pandemic the Canadian government made payments to households under the Canada Emergency Response Benefit (CERB) program. a) Using diagrams, carefully explain whether or not this policy would have had a lasting effect on aggregate demand under a fixed exchange rate regime. b) What is the effect of this policy on the interest rate in the long run? Explain your answer. Paragraph BIUVA EVEY OB

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