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Use IS-LM model. Assume that investment does notdepend on the interest rate. A reduction in government spending will cause which of the following for this
Use IS-LM model. Assume that investment does notdepend on the interest rate. A reduction in government spending will cause which of the following for this economy?
Select one:
a.a decrease in the interest rate
b.no change in output
c.no change in investment
d.none of these
e.an increase in investment
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