Answered: If real interest rates increase, the…

If real interest rates increase, the expenditure line Select one: O a. does not change. O b. becomes steeper. O c. becomes flatter. d. shifts down in a parallel way. e. shifts up in a parallel way.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter33: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 4CQQ

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Question

If real interest rates increase, the expenditure line
Select one:
O a. does not change.
O b. becomes steeper.
O c. becomes flatter.
O d. shifts down in a parallel way.
O e. shifts up in a parallel way.

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