Explain how the interest rate works in the classical system to stabilize aggregate demand in the face

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Explain how the interest rate works in the classical system to stabilize aggregate demand in the face of autonomous changes in components of aggregate demand such as investment or government spending.

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Macroeconomics Theories and Policies

ISBN: 978-0132831529

10th edition

Authors: Richard T. Froyen

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Question Posted: May 24, 2016 06:43 AM

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Explain how the interest rate works in the classical system to stabilize aggregate demand in the face

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The interest rate falls in response to the fall in the demand for loan able funds due to t...View the full answer

Macroeconomics Theories and Policies

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