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    Exam 11: The Income-Expenditure Model
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    Suppose the Economy Is in Equilibrium
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Suppose the Economy Is in Equilibrium

Question 101

Question 101

Multiple Choice

Suppose the economy is in equilibrium. Now, suppose there is an increase in investment. As the economy adjusts to this increase in investment, we know that:


A) the multiplier will increase.
B) consumption will fall.
C) saving will fall.
D) none of the above

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