The tendency of prices to adjust over time is shown by an upward movement along the IA line.

Question

Quizplus · Accepted Answer

The IA line typically represents the Investment-Saving curve in macroeconomics, and an upward movement along this line does not directly show the tendency of prices to adjust over time. Instead, it might indicate changes in factors like investment or savings rates at different levels of interest. Price adjustments over time are more directly related to inflation or deflation, which are not depicted by movements along the IA line.

The Tendency of Prices to Adjust Over Time Is Shown