Redraw Figures 12.11a and 12.11b to illustrate the effects on the resulting equilibrium level of income from
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Redraw Figures 12.11a and 12.11b to illustrate the effects on the resulting equilibrium level of income from each of the following changes:
a. A greater sensitivity of interest-related consumption and investment expenditure to changes in the interest rate.
b. A larger multiplier in the aggregate expenditure model.
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