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Which of the Following Is a Consistent Response to an Increase

Question 326

Multiple Choice

Which of the following is a consistent response to an increase in the U.S. real interest rate?


A) a London bank purchases a U.S. bond instead of a Japanese bond it had considered purchasing.
B) U.S. firms decide to buy more capital goods
C) a U.S. citizen decides to put less money in his savings account than he had planned.
D) All of the above are consistent.

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