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

Question 28

Question 28

Essay

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

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Output rises and interest rate...

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