7. Everything else held constant, if aggregate output is to the right of the LM curve,then there is an excessof money which will cause the interest rate toA) supply; fallB) supply; rise.C) demand: fall-D) demand; rise8. If the economy is on the LM curve, but is to the right of the IS curve, aggregateoutput willand the interest rate willA) rise; rise.B) rise; fall.C) fall; rise.D) fall; fall

Aggregate supply is the total quantity of output firms will produce and sell—in other words, the…

7. Everything else held constant, if aggregate output is to the right of the LM cur then there is an excess of money which will cause the interest rate to A) supply; fall B) supply; rise. C) demand; fall- D) demand; rise

7. Everything else held constant, if aggregate output is to the right of the LM cur then there is an excess of money which will cause the interest rate to A) supply; fall B) supply; rise. C) demand; fall- D) demand; rise

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter34: The Influence Of Monetary And Fiscal Policy On Aggregate Demand

Section: Chapter Questions

Problem 6PA

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Question

7. Everything else held constant, if aggregate output is to the right of the LM curve,
then there is an excess
of money which will cause the interest rate to
A) supply; fall
B) supply; rise.
C) demand: fall-
D) demand; rise
8. If the economy is on the LM curve, but is to the right of the IS curve, aggregate
output will
and the interest rate will
A) rise; rise.
B) rise; fall.
C) fall; rise.
D) fall; fall

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