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    Macroeconomics Study Set 12
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    Exam 5: Economic Growth, the Financial System and Business Cycles
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    An Increase in the Real Interest Rate Will
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An Increase in the Real Interest Rate Will

Question 96

Question 96

Multiple Choice

An increase in the real interest rate will:


A) decrease consumption and reduce investment.
B) decrease saving and investment.
C) increase investment and government spending.
D) decrease consumption and investment.

Correct Answer:

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