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    Macroeconomics Study Set 38
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    Exam 11: The Is Curve
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    Consider the IS Curve
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Consider the IS Curve

Question 84

Question 84

Multiple Choice

Consider the IS curve Consider the IS curve   . If there is no demand shock and   And   , a 1 percent increase in the real interest rate causes short-run output to: A)  fall by 2 percent. B)  rise by 4 percent. C)  fall by 4 percent. D)  fall by 0.5 percent. E)  Not enough information is given. . If there is no demand shock and Consider the IS curve   . If there is no demand shock and   And   , a 1 percent increase in the real interest rate causes short-run output to: A)  fall by 2 percent. B)  rise by 4 percent. C)  fall by 4 percent. D)  fall by 0.5 percent. E)  Not enough information is given.
And Consider the IS curve   . If there is no demand shock and   And   , a 1 percent increase in the real interest rate causes short-run output to: A)  fall by 2 percent. B)  rise by 4 percent. C)  fall by 4 percent. D)  fall by 0.5 percent. E)  Not enough information is given.
, a 1 percent increase in the real interest rate causes short-run output to:


A) fall by 2 percent.
B) rise by 4 percent.
C) fall by 4 percent.
D) fall by 0.5 percent.
E) Not enough information is given.

Correct Answer:

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