In the Short Run, a Permanent Increase in the Domestic

question 94

Multiple Choice

In the short run, a permanent increase in the domestic money supply causes

• A) a greater upward shift in the DD curve than that caused by an equal, but transitory, increase.
• B) a greater downward shift in the AA curve than that caused by an equal, but transitory, increase.
• C) a smaller upward shift in the AA curve than that caused by an equal, but transitory, increase.
• D) a smaller downward shift in the AA curve than that caused by an equal, but transitory, increase.
• E) a greater upward shift in the AA curve than that caused by an equal, but transitory, increase.

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Definitions:

American History

A field of study focusing on the events, people, and socio-political developments that have shaped the United States from its founding to the present day.

Primary

Original or main; typically refers to data or sources directly collected by the researcher.

Wildfire

A rapid, uncontrolled spread of fire across a natural area such as a forest, grassland, or prairie.

Primary Source

An original document or firsthand account of an event, used as a direct source of information about the topic.