If Uncertainty Causes People to Increase Their Demand for Cash

question 83

Multiple Choice

If uncertainty causes people to increase their demand for cash at the same time that the Fed raises money supply growth,then the Fed's action will:

• A) shift the AD curve further to the right.
• B) shift the AD curve less to the right.
• C) shift the AD curve further to the left.
• D) more effectively move the economy back to the old equilibrium point.

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