Use the following to answer questions :
Exhibit: Keynesian Cross and Loanable Funds
-(Exhibit: Keynesian Cross and Loanable Funds) Both graphs illustrate the inverse relationship between the equilibrium interest rate and the equilibrium level of income.The economy moves from equilibrium A to equilibrium B in the Keynesian-cross diagram as a result of a(n) ______ that shifts planned expenditures.
A) increase in income
B) decrease in income
C) increase in the interest rate
D) decrease in the interest rate
Correct Answer:
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Exhibit:
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