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When an Economy Is Experiencing an Economic Boom and Operating

Question 77

Multiple Choice

When an economy is experiencing an economic boom and operating beyond its long-run capacity,


A) strong demand for investment funds will push interest rates upward.
B) weak demand for resources will push the prices of resources downward.
C) weak demand for investment funds will cause the real interest rate to decline.
D) the unemployment rate will be greater than its natural rate.

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