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FIGURE 27-5 -Refer to Figure 27-5.This Economy Begins in Equilibrium with

Question 103

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FIGURE 27-5 -Refer to Figure 27-5.This economy begins in equilibrium with , and real GDP equal to potential GDP (with and ) .Now suppose there is an increase in the money supply to $540 billion.The initial response in this economy is A) an increase in the demand for money,causing a shift of the money demand curve to ,and a fall in interest rate to 3%. B) an increase in the demand for money,causing a shift of the money demand curve to ,and a fall in the interest rate to 2%. C) the AD and AS curves shift up simultaneously. D) a movement down along the money demand curve to a lower interest rate at 2%. E) an increase in the demand for money,causing a shift of the money demand curve to and the interest rate remains at 4%. FIGURE 27-5
-Refer to Figure 27-5.This economy begins in equilibrium with FIGURE 27-5 -Refer to Figure 27-5.This economy begins in equilibrium with , and real GDP equal to potential GDP (with and ) .Now suppose there is an increase in the money supply to $540 billion.The initial response in this economy is A) an increase in the demand for money,causing a shift of the money demand curve to ,and a fall in interest rate to 3%. B) an increase in the demand for money,causing a shift of the money demand curve to ,and a fall in the interest rate to 2%. C) the AD and AS curves shift up simultaneously. D) a movement down along the money demand curve to a lower interest rate at 2%. E) an increase in the demand for money,causing a shift of the money demand curve to and the interest rate remains at 4%. , FIGURE 27-5 -Refer to Figure 27-5.This economy begins in equilibrium with , and real GDP equal to potential GDP (with and ) .Now suppose there is an increase in the money supply to $540 billion.The initial response in this economy is A) an increase in the demand for money,causing a shift of the money demand curve to ,and a fall in interest rate to 3%. B) an increase in the demand for money,causing a shift of the money demand curve to ,and a fall in the interest rate to 2%. C) the AD and AS curves shift up simultaneously. D) a movement down along the money demand curve to a lower interest rate at 2%. E) an increase in the demand for money,causing a shift of the money demand curve to and the interest rate remains at 4%. and real GDP equal to potential GDP (with FIGURE 27-5 -Refer to Figure 27-5.This economy begins in equilibrium with , and real GDP equal to potential GDP (with and ) .Now suppose there is an increase in the money supply to $540 billion.The initial response in this economy is A) an increase in the demand for money,causing a shift of the money demand curve to ,and a fall in interest rate to 3%. B) an increase in the demand for money,causing a shift of the money demand curve to ,and a fall in the interest rate to 2%. C) the AD and AS curves shift up simultaneously. D) a movement down along the money demand curve to a lower interest rate at 2%. E) an increase in the demand for money,causing a shift of the money demand curve to and the interest rate remains at 4%. and FIGURE 27-5 -Refer to Figure 27-5.This economy begins in equilibrium with , and real GDP equal to potential GDP (with and ) .Now suppose there is an increase in the money supply to $540 billion.The initial response in this economy is A) an increase in the demand for money,causing a shift of the money demand curve to ,and a fall in interest rate to 3%. B) an increase in the demand for money,causing a shift of the money demand curve to ,and a fall in the interest rate to 2%. C) the AD and AS curves shift up simultaneously. D) a movement down along the money demand curve to a lower interest rate at 2%. E) an increase in the demand for money,causing a shift of the money demand curve to and the interest rate remains at 4%. ) .Now suppose there is an increase in the money supply to $540 billion.The initial response in this economy is


A) an increase in the demand for money,causing a shift of the money demand curve to FIGURE 27-5 -Refer to Figure 27-5.This economy begins in equilibrium with , and real GDP equal to potential GDP (with and ) .Now suppose there is an increase in the money supply to $540 billion.The initial response in this economy is A) an increase in the demand for money,causing a shift of the money demand curve to ,and a fall in interest rate to 3%. B) an increase in the demand for money,causing a shift of the money demand curve to ,and a fall in the interest rate to 2%. C) the AD and AS curves shift up simultaneously. D) a movement down along the money demand curve to a lower interest rate at 2%. E) an increase in the demand for money,causing a shift of the money demand curve to and the interest rate remains at 4%. ,and a fall in interest rate to 3%.
B) an increase in the demand for money,causing a shift of the money demand curve to FIGURE 27-5 -Refer to Figure 27-5.This economy begins in equilibrium with , and real GDP equal to potential GDP (with and ) .Now suppose there is an increase in the money supply to $540 billion.The initial response in this economy is A) an increase in the demand for money,causing a shift of the money demand curve to ,and a fall in interest rate to 3%. B) an increase in the demand for money,causing a shift of the money demand curve to ,and a fall in the interest rate to 2%. C) the AD and AS curves shift up simultaneously. D) a movement down along the money demand curve to a lower interest rate at 2%. E) an increase in the demand for money,causing a shift of the money demand curve to and the interest rate remains at 4%. ,and a fall in the interest rate to 2%.
C) the AD and AS curves shift up simultaneously.
D) a movement down along the money demand curve to a lower interest rate at 2%.
E) an increase in the demand for money,causing a shift of the money demand curve to FIGURE 27-5 -Refer to Figure 27-5.This economy begins in equilibrium with , and real GDP equal to potential GDP (with and ) .Now suppose there is an increase in the money supply to $540 billion.The initial response in this economy is A) an increase in the demand for money,causing a shift of the money demand curve to ,and a fall in interest rate to 3%. B) an increase in the demand for money,causing a shift of the money demand curve to ,and a fall in the interest rate to 2%. C) the AD and AS curves shift up simultaneously. D) a movement down along the money demand curve to a lower interest rate at 2%. E) an increase in the demand for money,causing a shift of the money demand curve to and the interest rate remains at 4%. and the interest rate remains at 4%.

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