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    Macroeconomics Study Set 39
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    Exam 3: National Income: Where It Comes From and Where It Goes
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    What Is the Effect of an Increase in Interest Rate
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What Is the Effect of an Increase in Interest Rate

Question 26

Question 26

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What is the effect of an increase in interest rate on keeping government spending constant on consumption and investment?

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With increase in interest rates, firms f...

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