Multiple Choice
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
Correct Answer:
Verified
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