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49. The change in aggregate demand that results from fiscal expansion changing the interest rate is called the a. multiplier
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49) Option B. When there is a fiscal expansion, rate of interest is increased. This causes private investment to decline and this crowds out private investment

50) Option C. When stock market expands, wealth increases and this raises consumption. AD shifts to the right and this can be reversed by reducing the money supply. This would raise interest rate and so AD shifts left.

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