Use the Following Figure to Nswer the Question

question 11

Multiple Choice

Use the following figure to nswer the question :
-In the figure above,illustrates the effect of an increased rate of money supply growth at time period 0. From the figure,one can conclude that the

• A)Fisher effect is dominated by the liquidity effect and interest rates adjust slowly to changes in expected inflation.
• B)liquidity effect is dominated by the Fisher effect and interest rates adjust slowly to changes in expected inflation.
• C)liquidity effect is dominated by the Fisher effect and interest rates adjust quickly to changes in expected inflation.
• D)Fisher effect is smaller than the expected inflation effect and interest rates adjust quickly to changes in expected inflation.

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Definitions:

Foramen Ovale

Structural feature of the fetal heart that allows for blood to move directly between the right and left atrium.

Right Atrium

The right upper chamber of the heart that receives deoxygenated blood from the body and pumps it into the right ventricle.

Homeotic Genes

Genes that control the development of anatomical structures in various organisms by regulating the pattern of body formation.

Morphogenesis

The biological process that causes an organism to develop its shape.