In the classical model with fixed income, an increase in the real interest rate could be the result of a(n):
A) increase in government spending.
B) decrease in government spending.
C) decrease in desired investment.
D) increase in taxes.

Question

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The Answer of In the classical model with fixed income, an increase in the real interest rate could be the result of a(n):
A) increase in government spending.
B) decrease in government spending.
C) decrease in desired investment.
D) increase in taxes.

In the Classical Model with Fixed Income, an Increase in the Real