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The Immediate Effect on GDP of Ibrahim's Purchase of a Government

Question 7

Multiple Choice

The immediate effect on GDP of Ibrahim's purchase of a government bond is


A) a decrease in consumption because Ibrahim has less money to spend
B) an increase in government spending
C) an increase in investment
D) a decrease in investment because less money is available to him for further investment
E) nonexistent,since no real goods and services have been produced

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