Figure 7-1 -Employing Figure Above, Assume That the Initial Equilibrium Y Was

question 40

Multiple Choice

Figure 7-1
-Employing Figure above, assume that the initial equilibrium Y was 2500 at E0 prior to a change in the nominal money supply. The movement from E0 to represents

• A) an increase in the nominal money supply with a constant interest rate.
• B) an increase in the nominal money supply with a constant price level.
• C) a decrease in the nominal money supply with a constant price level.
• D) a decrease in the nominal money supply with a rising interest rate.

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