Figure 16-3
-Refer to the Figure 16-3.Starting from c and 3,in the short run,where does an unexpected increase in money supply move the economy to?
A) a and 1
B) b and 2
C) e and 5
D) d and 4

Question

Figure 16-3 
-Refer to the Figure 16-3.Starting from c and 3,in the short run,where does an unexpected increase in money supply move the economy to?
A) a and 1 
B) b and 2 
C) e and 5 
D) d and 4

Quizplus · Accepted Answer

An unexpected increase in money supply typically lowers interest rates, leading to higher investment and output in the short run, moving the economy to a higher output and lower unemployment point, such as d and 4.

Figure 16-3 -Refer to the Figure 16-3.Starting from C and 3,in the and 3,in