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Unformatted text preview: Economics Practice Exam Ch. 10-12 (MacroEconomics) All H IG HL IG HED Answers a re I NCORRECT!!!! 5. In the classical model, desired saving A. is inversely related to real income. B. exceeds investment. C. is equal to desired investment. D. is less than desired investment. 8. According to the circular flow of income and output, saving causes A. consumption expenditures and total output to fall. B. consumption expenditures to fall short of total output. C. investment spending to fall. D. total output to fall. 13. All of the following explain the downward slope of the aggregate demand curve EXCEPT A. the effect of changing interest rates on the quantity demanded of interest-rate-sensitive goods. B. the availability of foreign substitute goods. C. changes in the stock of real wealth held by individuals. D. the presence of unused production capacity and unemployment. 14. option B is incorrect for #14....
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