In the Simple Keynesian model, for each of the following events, which component of aggregate demand (C, I, G or NX) is initially affected (answer should have only one component)? What will happen to the level of aggregate demand, RGDP and unemployment? (No explanation necessary) a. An increase in interest rates.
b. The value of the dollar increases.
c. A increase in the federal income tax rate.
d. Increases in the sale of goods and services has increased the optimism of business people.
e. The economies of our best trading partners’ are booming (growing rapidly).