
-In the diagram above,the increase in the level of output following the change in the price level is likely the result of
A) the real-balances effect on consumption.
B) the Fisher effect on inflation.
C) the foreign-trade effect on net exports.
D) a combination of the real-balances and Fisher effects on consumption and investment.
E) a combination of the real-balances and foreign-trade effects on consumption and net exports.
Correct Answer:
Verified
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