The Long-Run Income Effect (The Effect of Real GDP Changes

question 123

Multiple Choice

The long-run income effect (the effect of real GDP changes on spending) of decreased government purchases is that consumption

• A)is higher.
• B)is the same, investment is higher, and net exports are lower.
• C)and net exports are the same.
• D)and net exports are lower.
• E)is higher, and investment is higher.

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