Use the Following Figure to Nswer the Question

question 58

Multiple Choice

Use the following figure to nswer the question :

-The figure above illustrates the effect of an increased rate of money supply growth at time period T0. From the figure,one can conclude that the

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

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Definitions:

Energy Quality

Energy Quality refers to the ability of a form of energy to perform work; higher quality energies are more easily used to perform work effectively.

Electricity

The set of physical phenomena associated with the presence and motion of electric charge, used as a form of energy.

Ionizing Radiation

Radiation with enough energy to remove tightly bound electrons from atoms, thus creating ions, and can lead to chemical changes and damage biological tissues.

Mutation

describes a change in the DNA sequence within a gene or chromosome of an organism leading to the creation of a new character or trait not found in the parental type.