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    Principles of Macroeconomics Study Set 2
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    Exam 21: The Influence of Monetary and Fiscal Policy on Aggregate Demand
  5. Question
    An Increase in Government Purchases Is Likely to
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An Increase in Government Purchases Is Likely to

Question 271

Question 271

Multiple Choice

An increase in government purchases is likely to


A) decrease interest rates.
B) result in a net decrease in aggregate demand.
C) crowd out investment spending by business firms.
D) decrease money demand.

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