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From an Initial IS-LM Equilibrium with Normally-Sloped IS and LM

Question 139

Multiple Choice

From an initial IS-LM equilibrium with normally-sloped IS and LM curves,the money supply falls.At the new IS-LM equilibrium we have some combination of a ________ income and a ________ interest rate.


A) higher,higher
B) higher,lower
C) lower,higher
D) lower,lower

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