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    Macroeconomics Study Set 26
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    Exam 11: The Is Curve
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    Consider the IS Curve
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Consider the IS Curve

Question 18

Question 18

Multiple Choice

Consider the IS curve Consider the IS curve   If there is no demand shock and   And   ,a 1 percent increase in the real interest rate causes shortrun output to: A) fall by 2 percent. B) rise by 4 percent. C) fall by 4 percent. D) fall by 0.5 percent. E) Not enough information is given.
If there is no demand shock and Consider the IS curve   If there is no demand shock and   And   ,a 1 percent increase in the real interest rate causes shortrun output to: A) fall by 2 percent. B) rise by 4 percent. C) fall by 4 percent. D) fall by 0.5 percent. E) Not enough information is given.
And Consider the IS curve   If there is no demand shock and   And   ,a 1 percent increase in the real interest rate causes shortrun output to: A) fall by 2 percent. B) rise by 4 percent. C) fall by 4 percent. D) fall by 0.5 percent. E) Not enough information is given.
,a 1 percent increase in the real interest rate causes shortrun output to:


A) fall by 2 percent.
B) rise by 4 percent.
C) fall by 4 percent.
D) fall by 0.5 percent.
E) Not enough information is given.

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