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FIGURE 27-2 -Refer to Figure 27-2. Starting at Equilibrium E0, an Increase

Question 72

Multiple Choice

  FIGURE 27-2 -Refer to Figure 27-2. Starting at equilibrium E0, an increase in real GDP will lead to a A)  shift of the MS curve to the left and an increase in the interest rate. B)  shift of the MS curve to the right and a fall in the interest rate. C)  downward movement along the MD curve and a lower interest rate. D)  shift of the MD curve to the left and a fall in the interest rate. E)  shift of the MD curve to the right and an increase in the interest rate. FIGURE 27-2
-Refer to Figure 27-2. Starting at equilibrium E0, an increase in real GDP will lead to a


A) shift of the MS curve to the left and an increase in the interest rate.
B) shift of the MS curve to the right and a fall in the interest rate.
C) downward movement along the MD curve and a lower interest rate.
D) shift of the MD curve to the left and a fall in the interest rate.
E) shift of the MD curve to the right and an increase in the interest rate.

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