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Which of the Following Would Be Represented by a Negative ε\varepsilon

Question 5

Multiple Choice

Which of the following would be represented by a negative value of the random demand shock, ε\varepsilon t?


A) an irrational wave of optimism among investors
B) a decrease in government spending
C) an aggressive increase in oil prices by a cartel
D) a decrease in the central bank's inflation target

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