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  3. Study Set
    Intermediate Macroeconomics
  4. Exam
    Exam 13: Government Expenditure
  5. Question
    According to the Market Clearing Model, a One-Unit Temporary Decrease
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According to the Market Clearing Model, a One-Unit Temporary Decrease

Question 51

Question 51

Multiple Choice

According to the market clearing model, a one-unit temporary decrease in government purchases causes:


A) no change in GDP.
B) investment to rise about one unit.
C) no change in the interest rate.
D) all of the above.

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