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All Else Being Equal, an Increase in the Rate of Interest

Question 112

Multiple Choice

All else being equal, an increase in the rate of interest


A) causes a downward movement to the right along the nongovernment share line.
B) causes an upward movement to the left along the nongovernment share line.
C) shifts the nongovernment share line to the right.
D) shifts the nongovernment share line to the left.
E) has no effect on the nongovernment share of GDP.

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