If the central bank in the preceding question instead holds the money supply constant and allows the interest rate to adjust, the change in aggregate demand resulting from the increase in government purchases will be a. larger. b. the same. c. smaller but still positive. d. negative.
Principles of Macroeconomics (Mind...
Principles of Macroeconomics (Mind...
If the central bank in the preceding question instead holds the money supply constant and allows the interest rate to adjust, the change in aggregate demand resulting from the increase in government purchases will be
a. larger.
b. the same.
c. smaller but still positive.
d. negative.
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