Multiple Choice
The equilibrium effects of a temporary increase in government spending include
A) an increase in the real wage and an increase in the real interest rate.
B) an increase in the real wage and a decrease in the real interest rate.
C) a decrease in the real wage and an increase in the real interest rate.
D) a decrease in the real wage and a decrease in the real interest rate.
E) real wages and the real interest rate remaining unchanged.
Correct Answer:
Verified
Correct Answer:
Verified
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