If the interest rate is below equilibrium, the excess demand for money puts downward pressure on the interest rate.
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Q1: Keynes's theory that the interest rate adjusts
Q2: In the long run, the interest rate
Q5: When the government increases its purchases, the
Q7: The liquidity of money explains the demand
Q8: The quantity of money demanded is _
Q9: The theory of Ricardian equivalence suggests that
Q13: The multiplier effect suggests that the increase
Q14: The multipler > 1 represents a less
Q15: Changes in government spending affect saving and
Q18: The global financial crisis has shown that
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