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Figure 28-2 -Refer to Figure 28-2. Suppose the Economy Is at Point

Question 70

Multiple Choice

Figure 28-2 Figure 28-2   -Refer to Figure 28-2. Suppose the economy is at point B. If the Fed increases the money supply so that inflation increases, the economy will ________ in the short run, holding all else constant. A)  eventually move to point A B)  stay at point B C)  eventually move to point C D)  move to point A and then back to point B
-Refer to Figure 28-2. Suppose the economy is at point B. If the Fed increases the money supply so that inflation increases, the economy will ________ in the short run, holding all else constant.


A) eventually move to point A
B) stay at point B
C) eventually move to point C
D) move to point A and then back to point B

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