Multiple Choice
Suppose we have an initial IS-LM equilibrium at a certain price level.A rise in the price level puts ________ pressure on the interest rate as the money market re-equilibrates,which in turn causes commodity market equilibrium to occur at an output level ________ the initial one.
A) upward,above
B) upward,below
C) downward,above
D) downward,below
Correct Answer:
Verified
Correct Answer:
Verified
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