What bank committed to maintaining a fixed interest rate

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Reference no: EM1361514

Suppose government spending increases in a closed economy. Would the effect on aggregate demand be larger if the Bank of Canada took no action in response, or if the Bank were committed to maintaining a fixed interest rate?

Reference no: EM1361514

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What bank committed to maintaining a fixed interest rate : Suppose government spending increases in a closed economy. Would the effect on aggregate demand be larger if the Bank of Canada took no action in response, or if the Bank were committed to maintaining a fixed interest rate.

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