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By Analyzing Aggregate Demand Through Its Component Parts,we Can Conclude

Question 2

Multiple Choice

By analyzing aggregate demand through its component parts,we can conclude that,everything else held constant,a decline in the inflation rate causes


A) an increase in real interest rates, a decline in investment spending, and a decline in aggregate output demand.
B) a decline in real interest rates, a decrease in investment spending, and an increase in aggregate output demand.
C) a decline in real interest rates, an increase in investment spending, and an increase in aggregate output demand.

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