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Suppose there is a decline in the risk premium. Then, a) The IS and AD shift to the right b) The real interest rate declines

Suppose there is a decline in the risk premium. Then,

a) The IS and AD shift to the right

b) The real interest rate declines and the AD shifts the left

c) The real interest rate declines and the AD shifts the right

d) The real interest rate declines and the AS shifts the left

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