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    Exam 21: The Simplest Short-Run Macro Model
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    A Rise in the Real Rate of Interest ________ the Opportunity
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A Rise in the Real Rate of Interest ________ the Opportunity

Question 111

Question 111

Multiple Choice

A rise in the real rate of interest ________ the opportunity cost of holding an inventory of a given size,and therefore ________ desired investment expenditure.


A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; leaves unaffected
E) decreases; decreases

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