Multiple Choice
According to the New Monetarist Model,a negative shift in the k(r) function causes:
A) a shift right in aggregate demand, output increases and the real interest rate increases.
B) a shift left in aggregate supply, output decreases and the real interest rate increases.
C) a shift left in aggregate demand, output falls and the real interest rate decreases.
D) a shift right in aggregate supply, output increases and the real interest rate decreases.
E) a shift left in aggregate demand, output falls and the real interest rate increases.
Correct Answer:

Verified
Correct Answer:
Verified
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