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Macroeconomics

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Moderate

Movement Along LM

MACRO-JCA7JN

If there is an increase in output (Y) what will happen to the real interest rate (r) according to the LM curve?

A

It increases because of a movement along the LM curve

B

It increases because of a shift to the left of the LM curve

C

It decreases because of a movement along the LM curve

D

It decreases because of a shift to the right of the LM curve