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Would each of the following increase, decrease, or have no impact on open-market operations' ability to affect aggregate demand? Explain your answer.


a. Investment demand becomes less sensitive to changes in the interest rate.

b. The marginal propensity to consume rises.

c. The money multiplier rises.

d. Banks decide to hold additional excess reserves.

e. The demand for money becomes more sensitive to changes in the interest rate.

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manhokwe tawanda
manhokwe tawandaLv10
30 Sep 2019

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