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Figure 11-1

Question 145

Multiple Choice

Figure 11-1 Figure 11-1 -Refer to Figure 11-1. Suppose the Fed takes action that shifts the demand curve from D to D′, as illustrated in Panel (a) . As a result, the interest rate A) increases and investment increases. B) increases and investment decreases. C) decreases and investment increases. D) decreases and investment decreases.
-Refer to Figure 11-1. Suppose the Fed takes action that shifts the demand curve from D to D′, as illustrated in Panel (a) . As a result, the interest rate


A) increases and investment increases.
B) increases and investment decreases.
C) decreases and investment increases.
D) decreases and investment decreases.

Correct Answer:

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