According to the Misperceptions Theory,an Unanticipated Decrease in the Money

question 96

Multiple Choice

According to the misperceptions theory,an unanticipated decrease in the money supply shifts the AD curve to the ________,causing output to ________ in the short run.

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

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Definitions:

Basis in Evidence

Justification or support grounded on facts, data, or specific information rather than conjecture or opinion.

Argumentum ad Baculum

An appeal to force, where an argument is made legitimate or convincing through the use of threat or coercion.

Appeal to Force

A logical fallacy where someone tries to convince others of a point by threatening them either directly or indirectly, rather than by argument.

Fallacy

An error in reasoning or argumentation that leads to a misleading or false conclusion.