The reunification of Germany in 1990
A) led to a large outward shift in the LM curve, following by a tightening of fiscal policy and a shift of the IS curve to the left.
B) led to a large outward shift of the IS curve, and a tightening of monetary policy, which shifted the LM curve to the left and raised real interest rates.
C) led to a large outward shift of the IS curve, and a tightening of monetary policy, which shifted the LM curve to the right and lowered real interest rates.
D) led to a large inward shift of the IS curve, and a tightening of monetary policy, which shifted the LM curve to the left and raised real interest rates.
Correct Answer:
Verified
Q38: Under a fixed exchange rate system with
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