From an initial IS-LM equilibrium with a normally-sloped IS curve and a vertical LM curve, the money supply increases. A the new IS-LM equilibrium we have
A) higher income and a lower interest rate.
B) higher income and an unchanged interest rate.
C) an unchanged income and a lower interest rate.
D) lower income and an unchanged interest rate.
E) an unchanged income and a higher interest rate.
A
Economics
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