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Figure 10.3 Panel (A) Panel (B)

Question 30

Multiple Choice

Figure 10.3
Figure 10.3 Panel (a) Panel (b) -Refer to Figure 10.3...An increase in the real interest rate,with no other changes that affect aggregate expenditure,is best represented by ________ in panel (a) and ________ in panel (b) . A) a shift from AE₂ to AE₃; a shift from IS₁ to IS₂ B) a shift from AE₃ to AE₂; a shift from IS₂ to IS₁ C) a shift from AE₂ to AE₁; a movement from point B to point A D) a shift from AE₃ to AE₁; a movement from point C to point A
Panel (a) Panel (b)
-Refer to Figure 10.3...An increase in the real interest rate,with no other changes that affect aggregate expenditure,is best represented by ________ in panel (a) and ________ in panel (b) .


A) a shift from AE₂ to AE₃; a shift from IS₁ to IS₂
B) a shift from AE₃ to AE₂; a shift from IS₂ to IS₁
C) a shift from AE₂ to AE₁; a movement from point B to point A
D) a shift from AE₃ to AE₁; a movement from point C to point A

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