Multiple Choice
Refer to the information provided in Figure 26.5 below to answer the question(s) that follow. Figure 26.5
-Refer to Figure 26.5. Which of the following combinations would definitely increase the equilibrium interest rate?
A) government spending increases and the price level increases
B) government spending increases and the price level decreases
C) government spending decreases and the price level increases
D) government spending decreases and the price level decreases
Correct Answer:

Verified
Correct Answer:
Verified
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