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Suppose There Is a Simultaneous RBA Sale of Bonds and Increase

Question 57

Multiple Choice

Suppose there is a simultaneous RBA sale of bonds and increase in government spending. We know with certainty that this combination of policies must cause:


A) a decrease in i.
B) a decrease in Y.
C) an increase in Y.
D) an increase in i.
E) an increase in M.

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