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    Exam 10: Basic Macroeconomic Relationships
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    Other Things Equal, If the Real Interest Rate Falls and Business
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Other Things Equal, If the Real Interest Rate Falls and Business

Question 220

Question 220

Multiple Choice

Other things equal, if the real interest rate falls and business taxes rise,


A) investment will rise until it is equal to saving.
B) we will be uncertain as to the resulting change in investment.
C) we can be certain that investment will rise.
D) we can be certain that investment will fall.

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