Which of the Following Statements Is True

question 60

Multiple Choice

Which of the following statements is true?

• A)The IA line describes the behavior of firms and consumers when a change in the inflation rate causes interest rates to change.
• B)The IA line identifies inflation at any given time.
• C)The IA line identifies all possible points of spending balance.
• D)The AD curve identifies the rate of inflation at any given time.
• E)The IA line identifies real GDP at any given time.

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