Multiple Choice
A decrease in real GDP can
A) shift money demand to the right and decrease the interest rate.
B) shift money demand to the right and increase the interest rate.
C) shift money demand to the left and decrease the interest rate.
D) shift money demand to the left and increase the interest rate.
E) cause the money demand curve to become steeper and increase the interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
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