In the Figure Above, in the Long Run What Happens

question 92

Multiple Choice

In the figure above, in the long run what happens if the Fed increases the quantity of money by 5 percent?

• A)The real interest rate falls and the LRMD curve shifts rightward.
• B)The nominal interest rate rises by 5 percent.
• C)The price level rises by 5 percent and the LRMD shifts leftward.
• D)The value of money rises by 5 percent.
• E)The value of money falls by 5 percent and there will be a movement down along the LRMD curve.

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An offer that is subject to certain conditions being met before it becomes legally binding.

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A civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places that are open to the general public.

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