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    Macroeconomics Study Set 38
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    Exam 11: The Is Curve
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    When the Multiplier Is Included in the IS Curve, a Change
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When the Multiplier Is Included in the IS Curve, a Change

Question 1

Question 1

True/False

When the multiplier is included in the IS curve, a change in the real interest rate has a larger impact on short-run fluctuations than with the standard IS curve.

Correct Answer:

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