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Explain What Will Happen to the Aggregate Demand Curve and Real

Question 130

Essay

Explain what will happen to the aggregate demand curve and real GDP in each of the following cases.
(A) Fareipn preference far U.S. EQ0ts increases.
(B) The marpinal propensity to 5ere increases.
(C) The Fed lawers the tar Get infletion rate.
(D) Teres incrense.
(E) Warld interest rates rise relative to domestic interest rates

Correct Answer:

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(A) EGgarts vill increase, and the blured image curv...

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