Multiple Choice
Suppose we assume that initially
,
,
;if
Rises 2 percent and the real interest rate falls 2 percent,short-run output:
A) falls 2 percent.
B) rises 1 percent.
C) rises 3 percent.
D) falls 1 percent.
E) does not change.
Correct Answer:

Verified
Correct Answer:
Verified
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