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Figure 10.3 Panel (A) Panel (B)

Question 5

Multiple Choice

Figure 10.3
Figure 10.3 Panel (a) Panel (b) -Refer to Figure 10.3..A decrease in the real interest rate,with no other changes that affect aggregate expenditure,is best represented by ________ in panel (a) and ________ in panel (b) . A) a shift from AE₃ to AE₂; a shift from IS₂ to IS₁ B) a shift from AE₂ to AE₃; a shift from IS₁ to IS₂ C) a shift from AE₁ to AE₂; a movement from point A to point B D) a shift from AE₁ to AE₃; a movement from point A to point C
Panel (a) Panel (b)
-Refer to Figure 10.3..A decrease in the real interest rate,with no other changes that affect aggregate expenditure,is best represented by ________ in panel (a) and ________ in panel (b) .


A) a shift from AE₃ to AE₂; a shift from IS₂ to IS₁
B) a shift from AE₂ to AE₃; a shift from IS₁ to IS₂
C) a shift from AE₁ to AE₂; a movement from point A to point B
D) a shift from AE₁ to AE₃; a movement from point A to point C

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