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    Macroeconomics Study Set 60
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    Exam 12: Aggregate Demand Ii: Applying the Islm Model
  5. Question
    In the IS-LM Model in a Closed Economy, an Increase
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In the IS-LM Model in a Closed Economy, an Increase

Question 67

Question 67

Multiple Choice

In the IS-LM model in a closed economy, an increase in government spending increases the interest rate and crowds out:


A) prices.
B) investment.
C) the money supply.
D) taxes.

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