Ability of open-market operations to affect aggregate demand

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Reference no: EM13838599

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

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

b. the marginal propensity to consumer 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.

Reference no: EM13838599

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