In the summer of 2013,many news commentators started to raise concern over a potential tapering by the Federal Reserve.If The Federal Reserve were to cut the money supply and raise interest rates to control inflationary pressures,how would that be illustrated in the Keynesian cross diagram? Graphically illustrate and explain the impact on aggregate expenditure and income.

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The Answer of In the summer of 2013,many news commentators started to raise concern over a potential tapering by the Federal Reserve.If The Federal Reserve were to cut the money supply and raise interest rates to control inflationary pressures,how would that be illustrated in the Keynesian cross diagram? Graphically illustrate and explain the impact on aggregate expenditure and income.

In the Summer of 2013,many News Commentators Started to Raise