Assume that prices and wages adjust rapidly so that the markets for labour, goods, and assets are
Question:
a. A temporary increase in government purchases.
b. A reduction in expected inflation.
c. A temporary increase in labour supply.
d. An increase in the interest rate paid on money.
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a An increase in government purchases reduces national saving causing the reap interest rate to rise ...View the full answer
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Related Book For 
Macroeconomics
ISBN: 978-0321675606
6th Canadian Edition
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
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