In the Figure Given Below Panel a Represents Money Market

question 111

Multiple Choice

In the figure given below panel A represents money market equilibrium, panel B represents investment demand, and panel C represents equilibrium real GDP.
Figure 13.3

-Refer to Figure 13.3. Other things equal, if the interest rate is greater than 6 percent, then:

• A) investment spending will be greater than $500 billion.
• B) the equilibrium level of real GDP will increase.
• C) the equilibrium level of real GDP will decrease.
• D) the money demand curve will shift downward to the left.
• E) the equilibrium price level will increase.

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A confrontational response to a threat or challenge, characterized by aggressive behavior or opposition, as part of the fight-or-flight response mechanism.