The SRAS Curve Is Upward Sloping,there Is a Liquidity Trap,and

question 149

Multiple Choice

The SRAS curve is upward sloping,there is a liquidity trap,and investment spending is sensitive to changes in the interest rate.According to the monetarist transmission mechanism,if the money supply increases the AD curve __________ and the price level __________.

• A) does not change; does not change
• B) shifts to the left; falls
• C) shifts to the right; rises
• D) does not change; rises
• E) none of the above

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Definitions:

Obstacles

Factors, objects, or conditions that impede progress or make it difficult to achieve an objective.

Length of Workday

The total number of hours an employee is expected to work within a single day.

Goal Commitment

The level of determination and attachment an individual has towards achieving a set objective.

Expected Rewards

Anticipated benefits or compensation individuals believe they will receive as a result of undertaking certain actions.