
A) an increase in the money supply from $80 to $100 will shift the aggregate demand curve rightward by $50 billion at each price level.
B) an increase in the money supply from $80 to $100 will shift the aggregate demand curve leftward by $40 billion at each price level.
C) a decrease in the interest rate from 9 percent to 6 percent will shift the aggregate demand curve leftward by $100 billion at each price level.
D) a decrease in the interest rate from 6 percent to 3 percent will shift the aggregate demand curve leftward by $50 billion at each price level.
Correct Answer:
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Q144: Q145: Q146: If the economy is operating in the Q147: All else equal, when the Federal Reserve Q148: Assume that the price level is flexible Q150: All else equal, when the Federal Reserve Q151: Q152: A restrictive monetary policy is designed to Q153: In response to the zero lower bound Q154: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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