Question: Study the diagram below and answer questions 29 and 30. iS LM Real interest rate. r A Fl .I Fl '7' 2/ D Change in

Study the diagram below and answer questions 29 and 30. iS LM Real interest rate. r A Fl .I Fl '7' 2/ D Change in ination rate Y 29. Suppose that the SARB policy rate is equal to r. Which one of the following statements is correct about the top figure in the diagram? The relationship between the interest rate and the level of output is negative. The relationship between the interest rate and the level of output is positive. The is no relationship between the interest rate and the level of output at point a. There is an uncertain relationship between the interest rate and the level of output. PPNT

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