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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: Part A
  5. Question
    Figure 34-14 -Refer to Figure 34-14.Initial Equilibrium Exists at Point A.A Decline
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Figure 34-14 -Refer to Figure 34-14.Initial Equilibrium Exists at Point A.A Decline

Question 16

Question 16

Short Answer

Figure 34-14 Figure 34-14   -Refer to Figure 34-14.Initial equilibrium exists at point A.A decline in prices will cause households to ----- their desired money holdings,moving the interest rate to -----.
-Refer to Figure 34-14.Initial equilibrium exists at point A.A decline in prices will cause households to ----- their desired money holdings,moving the interest rate to -----.

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