Everything Else Held Constant,if Aggregate Output Is to the Right

question 56

Multiple Choice

Everything else held constant,if aggregate output is to the right of the LM curve,then there is an excess ________ of money which will cause the interest rate to ________.

• A)supply;fall
• B)supply;rise
• C)demand;fall
• D)demand;rise

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Definitions:

Dollars

A unit of currency used in the United States and other countries, symbolized by the $ sign and used as a standard monetary unit.

Current Account

A financial statement within the balance of payments summarizing the flow of goods, services, income, and transfer payments into and out of a country.