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-In the Figure Above, in the Long Run What Happens

question 79

Multiple Choice

  -In the figure above, in the long run what happens if the Fed increases the quantity of money by 5 percent? A)  The value of money falls by 5 percent and there will be a movement down along the LRMD curve. B)  The real interest rate falls and the LRMD curve shifts rightward. C)  The nominal interest rate rises by 5 percent. D)  The price level rises by 5 percent and the LRMD shifts leftward. E)  The value of money rises by 5 percent.
-In the figure above, in the long run what happens if the Fed increases the quantity of money by 5 percent?

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