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

question 17

Multiple Choice

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

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Profit Goal

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