As a Result of an Increased Deficit Associated with Discretionary

question 126

Multiple Choice

As a result of an increased deficit associated with discretionary fiscal policy,

• A)both the interest rate and real output fall
• B)both the interest rate and nominal output rise
• C)the interest rate falls and real output rises
• D)the interest rate rises and real output falls
• E)nominal output rises,real output falls,and the interest rate rises

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