-In the Above Figure, If the Economy Is Initially at Point

question 98

Multiple Choice

-In the above figure, if the economy is initially at point c, the short- run effect of a hike in the cash rate is given by the movement from point

• A)c to point d, increasing output and decreasing the unemployment rate.
• B)c to point d, decreasing output and increasing the unemployment rate.
• C)c to point b, increasing output and decreasing the unemployment rate.
• D)c to point a, keeping output and the unemployment rate constant.

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Definitions:

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Interest calculated or paid on a debt or investment on a monthly basis.

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A type of digital or virtual currency that uses cryptography for security and operates independently of a central bank.

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