Other things being equal, the flatter the AS curve for the economy , the
A) smaller the impact on real output from any given increase in the money supply.
B) more sensitive the aggregate expenditure function to changes in the interest rate.
C) smaller the impact on the price level from any given increase in the money supply.
D) larger the impact on the price level from any given increase in the money supply.
E) less sensitive the aggregate expenditure function to changes in the interest rate.
Correct Answer:
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