Suppose That the Money Supply Decreases

question 48

Multiple Choice

Suppose that the money supply decreases.In the short run,this increases prices according to

• A)both the short-run Phillips curve and the aggregate demand and aggregate supply model.
• B)neither the short-run Phillips curve nor the aggregate demand and aggregate supply model.
• C)the short-run Phillips curve,but not according to the aggregate demand and aggregate supply model.
• D)the aggregate demand and aggregate supply model but not according to the short-run Phillips curve.

---

Definitions:

Limited Liability Clause

A provision in a contract that limits the amount of money one party can be responsible for in case of breach of the contract.

Res Ipsa Loquitur

A legal doctrine stating that the occurrence of an accident implies negligence, as the event would not normally happen without it.

You May Have the Body

A common English translation of "Habeas Corpus," a legal action or writ by means of which detainees can seek relief from unlawful imprisonment.

To Show, Prove

The process of providing evidence or argument to establish the truth of a statement in a legal or factual scenario.