If money demand is unaffected by changes in the interest rate, what effect will a rise in

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If money demand is unaffected by changes in the interest rate, what effect will a rise in government spending have on the position of the aggregate demand curve?

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Economics of Money, Banking and Financial Markets

ISBN: 978-0321598905

9th Edition

Authors: Frederic S. Mishkin

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Question Posted: Aug 12, 2012 04:33 AM

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If money demand is unaffected by changes in the interest rate, what effect will a rise in

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No effect The LM curve would be vertical in this case meaning that a ...View the full answer

Economics of Money, Banking and Financial Markets

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