Assume that the economy is presently in equilibrium. A decline in the
Assume that the economy is presently in equilibrium. A decline in the interest rate
a. increases planned investment, aggregate demand, and equilibrium income.
b. increases unplanned investment, reducing aggregate demand and equilibrium income.
c. increases unplanned investment, increasing aggregate demand and equilibrium income.
d. increases money demand, the money supply, aggregate demand, and equilibrium income.
ANSWER
A
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