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From an Initial IS-LM Equilibrium with a Normally-Sloped IS Curve

Question 120

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From an initial IS-LM equilibrium with a normally-sloped IS curve and a vertical LM curve,the money supply increases.A the new IS-LM equilibrium we have


A) higher income and a lower interest rate.
B) higher income and an unchanged interest rate.
C) an unchanged income and a lower interest rate.
D) lower income and an unchanged interest rate.
E) an unchanged income and a higher interest rate.

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