Homework Answers
At point X according to the graph the curve decreases which indicates that the economy is decreases.
So interest rate should be decreases because as interest rate decreases then the borrower can easily get loan and so money supply increases and if the money supply increases then aggregate demand increases and so production increases and so output increases and then economy again increases.
So option D is the correct statement.
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Based on the graph below, what would be the appropriate fiscal policy action at point X?...
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