Why Are the Interest-Rate,foreign-Trade and Real Balances Effects Important

question 97

Multiple Choice

Why are the interest-rate,foreign-trade and real balances effects important?

• A)They help explain the shape of the aggregate supply curve.
• B)They help explain why demand-management policies are ineffective in fighting stagflation.
• C)They help explain shifts in the aggregate supply curve.
• D)They help explain the shape of the aggregate demand curve.
• E)They help explain shifts in the aggregate demand curve.

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