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If the real interest rate increases : A. The AE curve will pivot up. B. The AE curve will pivot down. C. The AE curve

If the real interest rate increases :

  • A. The AE curve will pivot up.
  • B. The AE curve will pivot down.
  • C. The AE curve will not change.
  • D. The AE curve will shift up in a parallel fashion.
  • E. The AE curve will shift down in a parallel fashion.

only one right answer, which one is it?

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