Suppose the Intersection of the IS and LM Curves Is

question 43

Multiple Choice

Suppose the intersection of the IS and LM curves is to the right of the FE line.What would most likely eliminate a disequilibrium among the asset,labour,and goods markets?

• A)a rise in the price level,shifting the LM curve up
• B)a fall in the price level,shifting the LM curve down
• C)a rise in the price level,shifting the IS curve up
• D)a fall in the price level,shifting the IS curve down

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