Figure 7-1

-Employing Figure 7-1 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.
Correct Answer:
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Q7: A doubling of the nominal money supply
Q8: A fall in the price level causes
Q9: The slope of the SAS curve is
Q10: Let the government increase lump-sum taxes.The aggregate
Q11: A flatter IS curve implies that the
Q13: The aggregate demand curve may be derived
Q14: An increase in the price level will
A)increase
Q15: The AD curve will shift to the
A)right
Q16: The LM curve will shift to the
A)left
Q17: At every point to the right of
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