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The Spending Allocation Pertains to the Long Run Because

Question 120

Multiple Choice

The spending allocation pertains to the long run because


A) it takes time for the government to adjust spending and taxes.
B) of the way monetary policy works.
C) exchange rates adjust very slowly to changing market conditions.
D) it takes time for consumers and businesses to completely respond to changes in interest rates.
E) it takes time for market interest rates to adjust to changing conditions.

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