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At a Given Output Level,a Temporary Reduction in Government Purchases

Question 39

Multiple Choice

At a given output level,a temporary reduction in government purchases will


A) increase desired saving, causing the IS curve to shift down and to the left.
B) increase desired saving, causing the IS curve to shift up and to the right.
C) decrease desired saving, causing the IS curve to shift down and to the left.
D) decrease desired saving, causing the IS curve to shift up and to the right.

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