Increase in the real interest rate shifts expenditure line

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Reference no: EM13839508

In the Keynesian-cross model, an increase in the real interest rate shifts the expenditure line _____ and short-run equilibrium output _____.

1. upward; does not change

2. upward; decreases

3. upward; increases

4. downward; increases

5. downward; decreases

Reference no: EM13839508

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