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How will the given events affect the aggregate demand curve

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Reference no: EM13391731

Once the crowding-out effect is accounted for, how will the following events affect the aggregate demand curve, as well as real interest rates? Use a Keynesian perspective. Use graphs for your answer.

a. The open market desk in the New York Fed conducts open market purchase.
b. Federal government increases income tax.

Reference no: EM13391731

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