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    Macroeconomics Study Set 11
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    Exam 14: Financial Markets and Expectations
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    Suppose a Cut in Government Spending Occurs That Is at Least
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Suppose a Cut in Government Spending Occurs That Is at Least

Question 69

Question 69

Essay

Suppose a cut in government spending occurs that is at least partially unexpected.Explain what effect this will have on stock prices.

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Output falls and interest rate...

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