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    Macroeconomics Study Set 30
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    Exam 14: The Great Recession and the Short-Run Model
  5. Question
    Adding a Financial Friction to the Short-Run Model
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Adding a Financial Friction to the Short-Run Model

Question 66

Question 66

Multiple Choice

Adding a financial friction to the short-run model:


A) shifts the MP curve down
B) shifts the AD curve down
C) shifts the IS curve up
D) All of these answers are correct.
E) None of these answers are correct.

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