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Suppose the Government Share of GDP Is 25 Percent and the Consumption

Question 124

Multiple Choice

Suppose the government share of GDP is 25 percent and the consumption, investment, and net export shares of GDP are 60, 15, and 3 percent, respectively. Under these circumstances, we would expect


A) the government share of GDP to increase.
B) the interest rate to increase.
C) the interest rate to remain constant.
D) the interest rate to decrease.
E) net exports to increase.

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