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For This Question,assume That the Economy Is Initially Operating at the Natural

Question 21

Multiple Choice

For this question,assume that the economy is initially operating at the natural level of output.A fiscal contraction must cause


A) an increase in investment in the medium run.
B) a reduction in investment in the short run.
C) no change in investment in the medium run.
D) an increase in investment in the short run.
E) none of the above

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