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In the IS Model,assuming That the Real Interest Rate Does

Question 86

Multiple Choice

In the IS model,assuming that the real interest rate does not change,an increase in autonomous net exports causes total investment,planned plus unplanned,to ________.


A) fall,then rise back to its initial level
B) fall,then rise above its initial level
C) rise,then fall back to its initial level
D) all of the above
E) none of the above

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