There are four major components of aggregate demand

There are four major components of aggregate demand - ....

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There are four major components of aggregate demand. The equation for aggregate  demand, Y = C(Y - T) + I(r) + G + NX(e), tells much about the nature of both aggregate  demand and the curve that represents this schedule.  Components of aggregate demand  The equation for aggregate demand proposed by the Mundell-Fleming model of a large  open economy is Y = C(Y - T) + I(r) + G + NX(e). Y represents income or output. C(Y -  T) represents consumption as a function of disposable income, defined as income less  taxes. I(r) represents investment as a function of the interest rate, where an increase in  the interest rate decreases investment. G represents government spending, which is  predominately unaffected by interest rates. Finally, NX(e) represents net exports,  defined as exports less imports as a function of the real exchange rate, where an  increase in the real exchange rate decreases net exports. Understanding the details of 
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There are four major components of aggregate demand - ....

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