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Suppose now also that the interest rate remains at 3%, but the government tries to close this output gap bv increasing G. G increases from

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Suppose now also that the interest rate remains at 3%, but the government tries to close this output gap bv increasing G. G increases from 51GB to SZEIJ. e] What happens to National Savings, Investment, and the interest rate in the Long-Hun? Interest Rate decreases. Investment increases. N5 decreases

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