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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Fiscal Policy Influences Aggregate Demand
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    An Increase in Government Purchases Is Likely to
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An Increase in Government Purchases Is Likely to

Question 106

Question 106

Multiple Choice

An increase in government purchases is likely to


A) decrease interest rates.
B) reduce money demand.
C) crowd out investment spending by business firms.
D) All of the above are correct.

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