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    Exam 15: Modern Macroeconomics: From the Short Run to the Long Run
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    The Reduction in Investment Spending in the Long Run Results
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The Reduction in Investment Spending in the Long Run Results

Question 32

Question 32

Multiple Choice

The reduction in investment spending in the long run results from an increase in government expenditures because:


A) the tax rate increases.
B) real interest rates increase.
C) real interest rates decrease.
D) nominal interest rates decrease.

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