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Figure 7-1 -Employing Figure 7-1 Above,assume That the Initial Equilibrium Y Was

Question 12

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Figure 7-1
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.
-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 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.


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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