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For This Question,assume That Investment Spending Depends Only on Output

Question 45

Multiple Choice

For this question,assume that investment spending depends only on output and no longer depends on the interest rate.Given this information,an increase in government spending


A) will cause investment to decrease.
B) will cause investment to increase.
C) may cause investment to increase or to decrease.
D) will have no effect on output.
E) will cause an increase in output and have no effect on the interest rate.

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