If GDP increases, there will initially be
A) a shortage of money and the equilibrium interest rate will rise.
B) a shortage of money and the equilibrium interest rate will fall.
C) a surplus of money and the equilibrium interest rate will rise.
D) a surplus of money and the equilibrium interest rate will fall.
Answer: A) a shortage of money and the equilibrium interest rate will rise.
Economics
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Average costs curves initially fall
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