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    Exam 22: The Monetary Policy and Aggregate Demand Curves
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    An Increase in Financial Frictions Causes the IS Curve to Shift
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An Increase in Financial Frictions Causes the IS Curve to Shift

Question 4

Question 4

Multiple Choice

An increase in financial frictions causes the IS curve to shift ________ and the aggregate demand curve to shift ________.


A) left; left
B) left; right
C) right; left
D) right; right

Correct Answer:

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