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If the Baseline Level of Investment Expenditures, I₀, Increases by $1

Question 67

Multiple Choice

If the baseline level of investment expenditures, I₀, increases by $1 trillion, then investment spending will

A) decrease by $1 trillion.
B) increase by $1 trillion times the real interest rate.
C) increase by $1 trillion.
D) remain the same.

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