An increase in real GDP can shift

A) money demand to the right and decrease the equilibrium interest rate.
B) money demand to the right and increase the equilibrium interest rate.
C) money demand to the left and decrease the equilibrium interest rate.
D) money demand to the left and increase the equilibrium interest rate.


Answer: B

Economics

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If, for a given percentage increase in price, quantity supplied increases by a proportionately larger percentage, then supply is

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A firm should make an investment if the expected return is greater than

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Economics