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In the AS-AD model, a deficit reduction: O crowds-in investment in the short-run and medium-run due to a decrease in interest rates. O has no

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In the AS-AD model, a deficit reduction: O crowds-in investment in the short-run and medium-run due to a decrease in interest rates. O has no effect on the medium-run economy due to the neutrality of money. O decreases output in the short-run and the medium-run has no effect on interest rates in the short-run

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