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What change in investment expenditures (I) is required to bridge Kappas current recessionary gap of $200? a) an increase of $30 b) a decrease of

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  1. What change in investment expenditures (I) is required to bridge Kappa’s current recessionary gap of $200?

    a) an increase of $30 b) a decrease of $30 c) an increase of $40 d) a decrease of $40.

  2. What change in the rate of interest (i) is required to generate the change in investment expenditures ?
     a) an increase of 2 percentage points b) a decrease of 2 percentage points c) an increase of 4 percentage points d) a decrease of 4 percentage points.

  3. What change in the money supply is required to generate the change in the rate of interest ?

     

    a) an increase of $20 b) a decrease of $20 c) an increase of $30 d) a decrease of $30.

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