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Assume there is no government or foreign sector. If the multiplier is 2, a $20 billion increase in planned investment will cause aggregate output to increase by
Central Banks
Institutions that manage the currency, money supply, and interest rates of a state or country.
Political Control
The influence or authority exerted by a government or political group over its citizens, economic system, or societal structures.
Inflation Rates
The percentage increase in the price level of goods and services over a period, reducing purchasing power.
Excess Reserves
Bank reserves that exceed the required minimum amount that financial institutions must hold in reserve against deposit liabilities.
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