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    Exam 3: National Income: Where It Comes From and Where It Goes
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    In the Classical Model with Fixed Income, a Reduction in the Government
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In the Classical Model with Fixed Income, a Reduction in the Government

Question 109

Question 109

Multiple Choice

In the classical model with fixed income, a reduction in the government budget deficit will lead to a:


A) higher real interest rate.
B) lower real interest rate.
C) higher level of output.
D) lower level of output.

Correct Answer:

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