Suppose the Intersection of the IS and LM Curves Is

question 96

Multiple Choice

Suppose the intersection of the IS and LM curves is to the right of the FE line.An increase in the price level would most likely eliminate a disequilibrium among the asset,labour,and goods markets by

• A)shifting the LM curve up.
• B)shifting the IS curve up.
• C)shifting the IS curve down.
• D)shifting the FE curve to the left.

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