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Please explain thoroughly. QUESTION 2 Which of the following events would increase the real interest rate in our neoclassical model? O a newly elected Congress

Please explain thoroughly.

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QUESTION 2 Which of the following events would increase the real interest rate in our neoclassical model? O a newly elected Congress cuts government purchases significantly the state legislature cuts taxes significantly O investment demand drops because of uncertainty during a crisis O C(Y-T) is Keynesian and the MPC declines

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