Determine the interest rate and aggregate demand

Reference no: EM13241444

Suppose a computer virus disables the nation's automatic tellter machines, making withdrawals from bank accounts less convenient. As a result, people want to keep more money on hand, increasing the deman for money.
a. Assume the Fed oes not change the money supply. Accoring to the theory of liquidilty preference, what happen to the interest rate? What happens to aggregate deman?

Reference no: EM13241444

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