- the Change Illustrated in the Figure Above Is Part of of the Transmission

question 88

Multiple Choice

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The change illustrated in the figure above is part of the transmission process of the Fed's monetary policy. As a result of the increase in the supply of loanable funds, in the short run aggregate demand _{--------------------}, aggregate supply_{--------------------} , and potential GDP_{--------------------} .

• A)decreases; increases; increases
• B)decreases; decreases; decreases
• C)increases; decreases; decreases
• D)increases; does not change; does not change
• E)increases; increases; increases

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Definitions:

Antiaromatic

Compounds that have a cyclic, conjugated electron configuration but do not follow Huckel's rule, leading to instability.

Aromatic

Relating to or denoting organic compounds that have a planar ring structure with delocalized pi electrons, leading to enhanced stability.

Huckle's Rule

A rule stating that aromatic compounds must have a planar ring of \(\pi\) bonds with a total of (4n + 2) \(\pi\) electrons.

Nonaromatic

Referring to organic compounds that do not meet the criteria for aromaticity, typically lacking a fully conjugated, cyclic electron system.