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    Principles of Economics Study Set 5
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    Exam 32: A Macroeconomic Theory of the Open Economy
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    Figure 19-4 -Refer to Figure 19-5.Starting from R<sub>2</sub> and E<sub>3</sub>,an Increase in E<sub>3</sub>,an
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Figure 19-4 -Refer to Figure 19-5.Starting from R2 and E3,an Increase in E3,an

Question 163

Question 163

Multiple Choice

Figure 19-4 Figure 19-4   -Refer to Figure 19-5.Starting from r<sub>2</sub> and E<sub>3</sub>,an increase in the budget deficit can be illustrated as a move to A)  r<sub>1</sub> and E<sub>4</sub>. B)  r<sub>1 </sub>and E<sub>2</sub>. C)  r<sub>3</sub> and E<sub>4</sub>. D)  r<sub>3</sub> and E<sub>2</sub>.
-Refer to Figure 19-5.Starting from r2 and E3,an increase in the budget deficit can be illustrated as a move to


A) r1 and E4.
B) r1 and E2.
C) r3 and E4.
D) r3 and E2.

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