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    Macroeconomics Study Set 9
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    Exam 10: Explaining Aggregate Demand: the Is-Mp Model
  5. Question
    Figure 10.7 -<B>Refer to Figure 10.7.</b>A Movement from Point C to Point
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Figure 10.7 -Refer to Figure 10.7.A Movement from Point C to Point

Question 33

Question 33

Multiple Choice

Figure 10.7
Figure 10.7    -Refer to Figure 10.7.A movement from point C to point A could be caused by A)  a negative demand shock. B)  a decrease in the term premium investors expect in the future. C)  a decrease in the default-risk premium. D)  a decrease in the expected rate of inflation.
-Refer to Figure 10.7.A movement from point C to point A could be caused by


A) a negative demand shock.
B) a decrease in the term premium investors expect in the future.
C) a decrease in the default-risk premium.
D) a decrease in the expected rate of inflation.

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