Using the Liquidity-Preference Model,when the Federal Reserve Increases the Money

question 75

Multiple Choice

Using the liquidity-preference model,when the Federal Reserve increases the money supply,

• A)​the equilibrium interest rate decreases.
• B)​the aggregate-demand curve shifts to the left.
• C)​the quantity of goods and services demanded is unchanged for a given price level.
• D)​the short-run aggregate-supply curve shifts to the right.

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