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    Macroeconomics Study Set 8
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    Exam 9: The Is-Lm-Fe Model: a General Framework for Macroeconomic Analysis
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    A Temporary Increase in Government Purchases Causes the Real Interest
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A Temporary Increase in Government Purchases Causes the Real Interest

Question 61

Question 61

Multiple Choice

A temporary increase in government purchases causes the real interest rate to ________ and output to ________.


A) rise;rise
B) rise;fall
C) fall;rise
D) rise;remain unchanged

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