Question: In the Neoclassical model, if consumption is a negative function of the real interest rate, this will make investment _____ when government purchases rises, compared

In the Neoclassical model, if consumption is a negative function of the real interest rate, this will make investment _____ when government purchases rises, compared to a case where consumption does not depend on the real interest rate.

A) rise less

B) fall more

C) fall less

D) rise more

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