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The Effects on the Economy of a Prolonged Decrease in Investment

Question 38

Multiple Choice

The effects on the economy of a prolonged decrease in investment are ________ if ________ occurs.


A) more pronounced;consumers adjust permanent income downwards
B) less pronounced;consumers do not adjust permanent income upwards
C) more pronounced;consumers adjust permanent income upwards
D) less pronounced;consumers adjust permanent income downwards

Correct Answer:

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