Moale 3 Exam o 5 Real Domenstic Refer to the dagrams Other t

Moale 3 Exam o 5 Real Domenstic Refer to the dagrams Other things equal, an ineenest rate reduction coupled with a rightward shit in curve A wi Mubple Choice shit ourve uad 8 G H

Solution

Answer is Shift curve B upwards.

Explanation:

The Real GDP will increase with the increase in investment hence the curve will shift in upward direction in its entirety.

However, the investment will increase with the decrease in Interest rate (i.e. demand of money will increase with the decrease in price)