-Refer to Exhibit 14-1

question 43

Multiple Choice

-Refer to Exhibit 14-1.What sequence of points shows the short- and long-run consequences of a fall in velocity under monetarist assumptions?

• A) A-E-B
• B) B-D-A
• C) A-D-B
• D) B-A

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Definitions:

Atm

A unit of pressure defined as atmospheric pressure, equivalent to the pressure exerted by the Earth's atmosphere at sea level.

Volume

The quantity of three-dimensional space occupied by a substance or item.

°C

A unit of temperature on the Celsius scale, a temperature scale originally known as the centigrade scale, with 0°C denoting the freezing point of water and 100°C its boiling point at sea level.

Atm

A unit of pressure defined as being equal to the pressure exerted by the Earth's atmosphere at sea level; approximately 101.325 kPa.