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    Intermediate Macroeconomics
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    Exam 6: Macroeconomics Without Microeconomic Foundations
  5. Question
    In the IS-LM Model, If Public Spending, G, Declines, Then
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In the IS-LM Model, If Public Spending, G, Declines, Then

Question 23

Question 23

Multiple Choice

In the IS-LM model, if public spending, G, declines, then in the new equilibrium:


A) output declines.
B) output increases
C) the real interest rate rises.
D) all of the above.

Correct Answer:

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