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The Keynes-Interest Rate effect suggests that Group of answer choices higher prices and, therefore higher interest rates would cause the AD curve to shift. the
The Keynes-Interest Rate effect suggests that Group of answer choices higher prices and, therefore higher interest rates would cause the AD curve to shift. the above scenario- lower prices, lower interest rates- would result in a movement up the AD curve. lower prices and, therefore lower interest rates would cause the AD curve to shift left. a lower price level might lead to a reduction in the demand for money resulting in a fall in the rate of interest, the result will be a movement down the AD curve
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