Starting in the Money Market, what will happen with the equilibrium interest rate and LM curve initially if the economy’s Price level increases?

a.- the equilibrium interest increases and the LM curve moves along an upward path.

b.- the equilibrium interest increases and the LM curve shifts to the right.

c.- the equilibrium interest increases and the LM curve shifts to the left.

d.- the equilibrium interest increases and the LM curve moves along a downward path.

 

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