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    Macroeconomics Study Set 8
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    Exam 10: Exchange Rates, business Cycles, and Macroeconomic Policy
  5. Question
    In a Keynesian Model,a Temporary Decrease in Government Purchases Would
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In a Keynesian Model,a Temporary Decrease in Government Purchases Would

Question 13

Question 13

Multiple Choice

In a Keynesian model,a temporary decrease in government purchases would cause output to ________ and the domestic real interest rate to ________.


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

Correct Answer:

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