What would happen to the aggregate demand curve if the following occurs? Again do one at a time. Explain your reasoning.
a. the Fed responded more to the inflation rate (λ gets larger).
b. net exports became less sensitive to the real interest rate (x gets smaller) __
c. net exports depended negatively on the real interest rate and negatively on Y (i.e.NX= NX -xr - mY where 0
d. G and T both increased by the same amount where both are autonomous or exogenous variables.