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In a Market Economy, If the Sum of the Consumption

Question 94

Multiple Choice

In a market economy, if the sum of the consumption, investment, and net export shares of GDP is greater than 1 minus the government share of GDP, market forces will result in


A) GDP contracting.
B) an increase in interest rates.
C) GDP expanding.
D) a decrease in interest rates.
E) an increase in the price level.

Correct Answer:

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