Starting in the Money Market, what will happen with the equilibrium interest rate and LM curve initially
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Question:
Starting in the Money Market, what will happen with the equilibrium interest rate and LM curve initially if the economy’s Price level increases?
a.- the equilibrium interest increases and the LM curve moves along an upward path.
b.- the equilibrium interest increases and the LM curve shifts to the right.
c.- the equilibrium interest increases and the LM curve shifts to the left.
d.- the equilibrium interest increases and the LM curve moves along a downward path.
Related Book For
Macroeconomics
ISBN: 978-1464168505
5th Canadian Edition
Authors: N. Gregory Mankiw, William M. Scarth
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