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Q.1 When the expected future marginal product of capital increases, then the IS curve
(A) shifts up and to the right
(B) shifts down and to the left
(C) becomes steeper
(D) becomes flatter
Q.2 An unanticipated inflation would cause
(A) redistribution of wealth from lenders to borrowers
(B) redistribution of wealth from borrowers to lenders
(C) gains for both borrowers and lenders
(D) losses for both borrowers and lenders
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