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Figure 13.1 -Which Is a Plausible Cause of the Movement in Figure

question 17

Multiple Choice

Figure 13.1 Figure 13.1   -Which is a plausible cause of the movement in Figure 13.1 from point 1 to point 2? A) a change in expectations that causes a decline in the real interest rate for investments B) a decrease in expected inflation C) the economy's self-correcting mechanism D) the central bank achieves a negative value for the nominal interest rate E) none of the above
-Which is a plausible cause of the movement in Figure 13.1 from point 1 to point 2?


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