An Increase in Real GDP Can Shift

question 118

Multiple Choice

An increase in real GDP can shift

• A)money demand to the right and decrease the equilibrium interest rate.
• B)money demand to the right and increase the equilibrium interest rate.
• C)money demand to the left and decrease the equilibrium interest rate.
• D)money demand to the left and increase the equilibrium interest rate.
• E)money demand to the right and leave the equilibrium interest rate unchanged.

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Definitions:

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