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The Interest-Rate and Real-Balances Effects Are Important Because They Help

Question 70

Multiple Choice

The interest-rate and real-balances effects are important because they help explain:


A) rightward and leftward shifts of the aggregate demand curve.
B) why demand-management policy cannot be used effectively to curb stagflation.
C) the shape of the aggregate demand curve.
D) the shape of the aggregate supply curve.

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