Consider Monetary Equilibrium and the Monetary Transmission Mechanism

question 23

Multiple Choice

Consider monetary equilibrium and the monetary transmission mechanism.An exogenous rise in the price level,with no change in the supply of money,will

• A)increase the demand for money and increase desired aggregate expenditure.
• B)increase the demand for money and decrease desired aggregate expenditure.
• C)decrease the demand for money and increase aggregate demand.
• D)decrease the demand for money and decrease aggregate demand.
• E)decrease aggregate demand but not affect the demand for money.

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