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In the Long-Run ISLM Model and with Everything Else Held

Question 24

Multiple Choice

In the long-run ISLM model and with everything else held constant,the long-run effect of an autonomous fall in consumption expenditure is to ________ real output and ________ the interest rate.


A) increase;increase
B) increase;not change
C) not change;increase
D) not change;decrease

Correct Answer:

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