If Both the Growth Rate and the Velocity of the Money

question 84

Multiple Choice

If both the growth rate and the velocity of the money supply are fixed,then a higher inflation rate will cause:

• A) an upward movement along the AD curve.
• B) a downward movement along the AD curve.
• C) a shift of the AD curve to the left.
• D) a shift of the AD curve to the right.

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