How is the AA schedule derived?

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02220

A.The AA schedule has a positive slope because an increase in output leads to a depreciation of the

B.The AA schedule has a negative slope because an increase in output leads to a decrease in the domestic interest

C.The AA schedule has a negative slope because an increase in output leads to an increase in the domestic interest

D.The AA schedule has a positive slope because an increase in the money supply leads to an increase in the domestic interest

E.None of the

Answer: C

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