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Answer to Question #89641 in Macroeconomics for Connor Mullooly
Question #89641
A reduction in government spending will not cause which of the following?
A. An increase in investment
B. A reduction in transactions and a reduction in money demand
C. An increase in the size of the multiplier
D. A reduction in the interest rate
A. An increase in investment
B. A reduction in transactions and a reduction in money demand
C. An increase in the size of the multiplier
D. A reduction in the interest rate
Expert's answer
A reduction in government spending will not cause which of the following?
C. An increase in the size of the multiplier
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