1. Answer all parts (a)-(c) of this question. (a) [9 marks] Explain why the goods market equilibrium gives rise to a neg
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relationship between the real interest rate and real output. Explain why the money
market equilibrium gives rise to a positive relationship between the real interest rate
and real output. Use diagrams to illustrate your answer.
1. Answer all parts (a)-(c) of this question. (a) [9 marks] Explain why the goods market equilibrium gives rise to a negative relationship between the real interest rate and real output. Explain why the money market equilibrium gives rise to a positive relationship between the real interest rate and real output. Use diagrams to illustrate your answer.