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Homework answers / question archive / In the ISLM framework, an expansionary monetary policy causes aggregate output to _____ and the interest rate to _____, everything else held constant

In the ISLM framework, an expansionary monetary policy causes aggregate output to _____ and the interest rate to _____, everything else held constant

Economics

In the ISLM framework, an expansionary monetary policy causes aggregate output to _____ and the interest rate to _____, everything else held constant.

a) increase; increase,

b) increase; decrease,

c) decrease; decrease,

d) decrease; increase.

Option 1

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