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Retnec Retnec
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6 years ago
According to the interest rate effect, an increase in the price level should
A) raise interest rates and increase spending on GDP; the aggregate demand curve should shift to the right.
B) lower interest rates and decrease spending on GDP; the aggregate demand curve should shift to the left.
C) raise interest rates and decrease spending on GDP; the aggregate demand curve should shift to the right.
D) lower interest rates and increase spending on GDP; the aggregate demand curve should be downward sloping.
E) raise interest rates and decrease spending on GDP; the aggregate demand curve should be downward sloping.
Textbook 
Introduction to Economic Reasoning

Introduction to Economic Reasoning


Edition: 8th
Author:
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hecosmetichecosmetic
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Retnec Author
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6 years ago
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