Answered: A) positive; interest rate and planned…

A) positive; interest rate and planned investment B) negative; interest rate and planned investment C) negative; interest rate and money demand D) inverse; price level and aggregate output

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

13) The aggregate demand curve shows a(n).
relationship between the
A) positive; interest rate and planned investment
B) negative; interest rate and planned investment
C) negative; interest rate and money demand
D) inverse; price level and aggregate output

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TOPIC: Classical economists and interest rate flexibility