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    Principles of Macroeconomics Study Set 12
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    Exam 11: The Determination of Aggregate Output, the Price Level, and the Interest Rate
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    Which of the Following Sequence of Events Follows a Decrease
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Which of the Following Sequence of Events Follows a Decrease

Question 79

Question 79

Multiple Choice

Which of the following sequence of events follows a decrease in the discount rate?


A) r↓ ⇒ I↓ ⇒ AE↓ ⇒ Y↑
B) r↑ ⇒ I↓ ⇒ AE↓ ⇒ Y↓
C) r↓ ⇒ I↑ ⇒ AE↑ ⇒ Y↑
D) r↑ ⇒ I↑ ⇒ AE↑ ⇒ Y↑

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