Multiple Choice
Which of the following statements would be true of an economy that can be characterized as being to the left of the IS curve?
A) There is an excess demand for commodities at the existing interest rate.
B) There will be a tendency for the level of output to decrease.
C) There is an excess supply of commodities at the existing interest rate.
D) There will be a tendency for interest rates to fall.
Correct Answer:
Verified
Correct Answer:
Verified
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