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A Decrease in Government Purchases or an Increase in Taxes

Question 58

Multiple Choice

A decrease in government purchases or an increase in taxes, other things being equal, will tend to:


A) ​increase interest rates and decrease investment as a result.
B) ​increase interest rates and increase investment as a result.
C) ​decrease interest rates and decrease investment as a result.
D) ​decrease interest rates and increase investment as a result.

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