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According to the model a permanent decrease in government purchases does not decrease the real interest rate according to the market clearing model because:
Q17: What happens to consumption when there is
Q19: According to the IS-MP-PC model, a negative
Q26: If a worker gets a promotion that
Q30: Absolute purchasing power parity means:<br>A)the quantity of
Q30: Households may feel wealthier due to a
Q45: If there is a decrease in government
Q48: The marginal propensity to save out of
Q48: What are the short run effects of
Q55: Open market operations amount to:<br>A)printing more money
Q57: If the money supply grows faster than