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    Macroeconomics Study Set 4
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    Exam 11: A Real Intertemporal Model with Investment
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    When Drawn Against the Real Interest Rate, the Output Demand
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When Drawn Against the Real Interest Rate, the Output Demand

Question 2

Question 2

Multiple Choice

When drawn against the real interest rate, the output demand curve shifts to the right when


A) current capital stock decreases.
B) current capital stock increases.
C) real wage rate decreases.
D) real wage rate increases.
E) current capital stock and real wage rate increases.

Correct Answer:

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