Suppose there is a reduction in government spending. Such a fiscal policy action will cause: Select one: the natural real interest rate to rise. the…

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Suppose there is a reduction in government spending. Such a fiscal policy action will cause:

Select one:

a. the natural real interest rate to rise.

b. the natural real interest rate to fall.

c. ambiguous effects on the natural real interest rate.

d. no effect on the natural real interest rate.

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