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    Principles of Macroeconomics Study Set 11
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    Exam 12: The Determination of Aggregate Output, the Price Level, and the Interest Rate
  5. Question
    What Would Be the Policy Mix That Would Cause the Interest
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What Would Be the Policy Mix That Would Cause the Interest

Question 99

Question 99

Essay

What would be the policy mix that would cause the interest rate to increase, and investment to decrease but have an indeterminate effect on aggregate output?

Correct Answer:

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An expansionary fiscal policy ...

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