Assume that investments is highly insensitvie to the, Business Economics

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Assume that investments is highly insensitvie to the

Assume that investments is highly insensitvie to the interest rate. Explain what effects are on interest and income of an increase in government expenditure (G). Which compent(S) of aggregrate demand are crowded out (i.e., reduce)? Use IS-LM diagram to support your answer.

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