Refer to the information provided in Figure 11.3 below to answer the questions that follow.
Figure 11.3
-Refer to Figure 11.3.A decrease in nominal aggregate output,ceteris paribus,will likely
A) increase the equilibrium interest rate without changing equilibrium money holdings.
B) decrease both the equilibrium interest rate and equilibrium money holdings.
C) increase the equilibrium interest rate and decrease equilibrium money holdings.
D) decrease the equilibrium interest rate without changing equilibrium money holdings.
Correct Answer:
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