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For a Given Increase in Government Spending Growth,intertemporal Substitution Is

Question 134

Multiple Choice

For a given increase in government spending growth,intertemporal substitution is more widespread when the impact of AD growth on:


A) both inflation and real GDP growth is stronger.
B) both inflation and real GDP growth is weaker.
C) inflation is stronger and the impact of the AD growth on real GDP growth is weaker.
D) inflation is weaker and the impact of AD growth on real GDP growth is stronger.

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