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Recall that the natural rate of interest is defined as the real interest rate that would bring the economy to full employment holding the fiscal
Recall that the natural rate of interest is defined as the real interest rate that would bring the economy to full employment holding the fiscal policy constant. How would the natural rate of interest change if there were a permanent expansionary fiscal policy? A. The natural rate of interest would rise, as less investment spending would be needed to bring the economy to full employment. B. The natural rate of interest would fall, as more investment spending would be needed to bring the economy to full employment. C. The natural rate of interest would rise, as more investment spending would be needed to bring the economy to full employment. D. The natural rate of interest would fall, as less investment spending would be needed to bring the economy to full employment
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