In the Short-Run Macro Model,an Increase in the Money Supply

question 163

Multiple Choice

In the short-run macro model,an increase in the money supply will

• A) move the economy to the right along the aggregate expenditure line.
• B) move the economy to the left along the aggregate expenditure line.
• C) shift the aggregate expenditure line upward.
• D) shift the aggregate expenditure line downward.
• E) cause the aggregate expenditure line to rotate until it is flat.

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