If the Reserve Bank raises the cash rate, eventually the
A) AS curve shifts leftward, decreasing real GDP and increasing the price level.
B) AD curve shifts leftward, decreasing real GDP and increasing the price level.
C) AS curve shifts rightward, decreasing real GDP and increasing the price level.
D) AD curve shifts leftward, decreasing real GDP and the price level.
E) AD curve shifts rightward, increasing real GDP and the price level.
Correct Answer:
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