Suppose That the Central Bank Must Follow a Rule That

question 4

Multiple Choice

Suppose that the central bank must follow a rule that requires it to increase the money supply when the price level falls and decrease the money supply when the price level rises.If the economy starts from long-run equilibrium and aggregate demand shifts right,the central bank must

• A)decrease the money supply,which shifts aggregate demand further right.
• B)decrease the money supply,which shifts aggregate demand left.
• C)increase the money supply,which shifts aggregate demand further right.
• D)increase the money supply,which shifts aggregate demand left.

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Definitions:

Valvular Disorder

A medical condition affecting the heart valves’ ability to open and close properly, impacting blood flow.

SA Node

The sinoatrial node, often regarded as the heart's natural pacemaker, initiates electrical impulses that determine the heart rate.

AV Node

The Atrioventricular Node, a critical component of the heart's electrical system, responsible for controlling the timing of heart muscle contractions.

Bundle of His

A group of specialized heart muscle cells that are designed for electrical signaling, responsible for carrying impulses from the AV node to the heart's ventricles.