An Increase in the Money Supply Shifts the MP Curve

question 93

Multiple Choice

An increase in the money supply shifts the MP curve to the right, causing the interest rate to ________ and output to ________, everything else held constant.

• A) rise; rise
• B) rise; fall
• C) fall; rise
• D) fall; fall

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Definitions:

1,4-Polymerization

A type of polymerization where monomers join together at the 1st and 4th positions, typically seen in the production of certain types of plastics and elastomers.

1,3-Butadiene

A simple conjugated diene with the formula C4H6, used as a monomer in the production of synthetic rubber.

Polymer

Large molecules composed of repeating structural units called monomers, which are bonded together via a process known as polymerization.

Cis-1,4-Polybutadiene

A type of synthetic rubber made from the polymerization of 1,3-butadiene monomers, where the polymer chains have a cis configuration leading to higher elasticity.