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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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    As Real GDP Falls
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As Real GDP Falls

Question 113

Question 113

Multiple Choice

As real GDP falls,


A) money demand rises,so the interest rate rises.
B) money demand rises,so the interest rate falls
C) money demand falls,so the interest rate rises.
D) money demand falls,so the interest rate falls.

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