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    Macroeconomics Policy and Practice
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    Exam 13: Macroeconomic Policy and Aggregate Demand and Supply Analysis
  5. Question
    An Increase in Financial Frictions Results in ________
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An Increase in Financial Frictions Results in ________

Question 66

Question 66

Multiple Choice

An increase in financial frictions results in ________.


A) a movement to the left along the AD curve
B) a leftward shift of the MP curve
C) a decrease in output and increase in inflation
D) a leftward shift of the IS curve

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