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-In the Figure Above, What Happens If the Fed Increases

question 101

Multiple Choice

-In the figure above, what happens if the Fed increases the quantity of money by 8 percent? A) The LRMD curve shifts rightward to restore equilibrium. B) The value of money falls to 0.92 and there is a movement downward along the LRMD. C) The price level falls to 1.08. D) The interest rate rises to 1.08. E) The value of money rises to 1.08.
-In the figure above, what happens if the Fed increases the quantity of money by 8 percent?

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