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    Macroeconomics Study Set 10
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    Exam 13: Exchange Rates, business Cycles, and Macroeconomic Policy in the Open Economy
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    In a Keynesian Model,a Temporary Increase in Government Purchases Would
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In a Keynesian Model,a Temporary Increase in Government Purchases Would

Question 71

Question 71

Multiple Choice

In a Keynesian model,a temporary increase in government purchases would cause output to ________ and the domestic real interest rate to ________,in the short run.


A) remain unchanged; increase
B) remain unchanged; decrease
C) increase; increase
D) increase; decrease

Correct Answer:

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