In the Short-Run Macro Model,a Decrease in the Money Supply

question 164

Multiple Choice

In the short-run macro model,a decrease 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) not affect the aggregate expenditure line

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Definitions:

Voluntarily Entered

A decision or action taken freely and without coercion by an individual or entity.

Per Se

A Latin term often used in law to indicate something that is intrinsically or inherently the case, without needing further proof or qualification.

Foreseeable Misuse

A legal concept referring to the predictable and incorrect use of a product that manufacturers should anticipate and guard against.

Obvious Risks

Hazards or dangers that are clear and apparent, which a reasonable person would recognize.