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If Government Purchases Decrease, in the Short Run

Question 73

Multiple Choice

If government purchases decrease, in the short run


A) consumption will increase as income increases.
B) consumption, investment, and net exports will increase as income increases.
C) consumption and investment will increase as income increases.
D) consumption will fall and net exports will increase as income falls.
E) consumption will increase, and real GDP will remain at potential GDP.

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