The SRAS Curve Is Upward Sloping,there Is a Liquidity Trap,and

question 149

Multiple Choice

The SRAS curve is upward sloping,there is a liquidity trap,and investment spending is sensitive to changes in the interest rate.According to the monetarist transmission mechanism,if the money supply increases the AD curve __________ and the price level __________.

• A) does not change; does not change
• B) shifts to the left; falls
• C) shifts to the right; rises
• D) does not change; rises
• E) none of the above

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Definitions:

Independent Variable

is a factor or condition that is intentionally manipulated or varied by researchers to observe its effect on a dependent variable in an experiment.

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