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    Exam 10: B: Basic Macroeconomic Relationships
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    If the Real Interest Rate in the Economy Is I
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If the Real Interest Rate in the Economy Is I

Question 64

Question 64

Multiple Choice

If the real interest rate in the economy is i and the expected rate of return from additional investment is r, then more investment will be forthcoming when:


A) r is greater than i.
B) i is greater than r.
C) r falls.
D) i rises.

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