Multiple Choice
A temporary decrease in government purchases would cause
A) an increase in the real interest rate and a decrease in desired investment.
B) a decrease in the real interest rate and an increase in desired investment.
C) a decrease in the real interest rate and an uncertain effect on desired investment.
D) an uncertain effect on the real interest rate and an increase in the level of desired investment.
Correct Answer:
Verified
Correct Answer:
Verified
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