Multiple Choice
The equilibrium effects of a temporary increase in government spending include
A) a decrease in the real wage and an increase in the real interest rate.
B) an increase in the real wage and a decrease in the real interest rate.
C) a decrease in the real wage and a decrease in the real interest rate.
D) real wages and the real interest rate remaining unchanged.
E) an increase in the real wage and an increase in the real interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
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