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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Monetary Policy Influences Aggregate Demand
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    The Short-Run Effects on the Interest Rate Are
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The Short-Run Effects on the Interest Rate Are

Question 168

Question 168

Multiple Choice

The short-run effects on the interest rate are


A) shown equally well using either liquidity preference theory or classical theory.
B) best shown using classical theory.
C) best shown using liquidity preference theory.
D) not shown well by either liquidity preference theory or classical theory.

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