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:

Repetitive Manner

Performing actions or behaviors over and over again in a consistent and unvarying way.

Self-Stimulatory Behaviors

Repetitive actions or movements, often seen in individuals with developmental disorders, that are used for self-soothing or sensory stimulation.

Statistically Significant

A determination that a relationship between two or more variables is caused by something other than chance at a specified level of probability.

Chance Variations

Random fluctuations in data or phenomena that are not attributable to any specific, identifiable cause.