Multiple Choice
Which of the following arrow-diagram is correct?
A) Increase in P ? increase in M/P ? increase in interest rate ? lower expenditure.
B) Increase in P ? decrease in M/P ? increase in interest rate ? lower expenditure.
C) Decrease in P ? increase in M/P ? decrease in interest rate ? increase expenditure.
D) Decrease in P ? decrease in M/P ? decrease in interest rate ? increase expenditure.
Correct Answer:
Verified
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