Figure 14.1 -Refer to Figure 14.1.Other things equal,an increase in the inflation rate is best represented as a movement from A) point A to point B. B) point C to point A. C) point C to point B. D) point B to point C.

Question

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According to Figure 14.1, an increase in the inflation rate would cause a higher interest rate, which is represented by a movement from point C to point B.

Figure 14.1 -Refer to Figure 14.1.Other Things Equal,an Increase in the Inflation