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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Definitions:

Woodcut

A printmaking technique that involves carving an image on a wooden block, applying ink to the raised surfaces, and then printing it onto paper, known for its bold lines and clear contrasts.

Etching

A kind of engraving in which the design is incised in a layer of wax or varnish on a metal plate. The parts of the plate left exposed are then etched (slightly eaten away) by the acid in which the plate is immersed after incising. See also drypoint, intaglio.

Engraving

The process of incising a design in hard material, often a metal plate (usually copper); also, the print or impression made from such a plate.

Vanishing Point

A point in the perspective drawing at which parallel lines receding from an observer seem to converge and at which they would meet if extended.