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Suppose that due to a financial crisis, the risk premium goes up. How does the AD curve change? A It becomes steeper. B It becomes

Suppose that due to a financial crisis, the risk premium goes up. How does the AD curve change?

A It becomes steeper.

B It becomes flatter.

C Its slope remains the same, but it shifts down and to the left.

D Its slope remains the same, but it shifts up and to the right.

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