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    Principles of Macroeconomics Study Set 8
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    Exam 19: A Macroeconomic Theory of the Open Economy: How Policies and Events Affect an Open Economy
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    A Decrease in the Budget Deficit Causes Domestic Interest Rates
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A Decrease in the Budget Deficit Causes Domestic Interest Rates

Question 21

Question 21

Multiple Choice

A decrease in the budget deficit causes domestic interest rates


A) and investment to rise.
B) to rise and investment to fall.
C) to fall and investment to rise.
D) and investment to fall.

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