Figure 13-2
-In the figure above, suppose that the Fed maintains a constant nominal money supply, commodity prices are fixed, and that commodity demand is unstable ranging from IS0 to IS1. Equilibrium Y would then range from

Question

Figure 13-2 
-In the figure above, suppose that the Fed maintains a constant nominal money supply, commodity prices are fixed, and that commodity demand is unstable ranging from IS0 to IS1. Equilibrium Y would then range from

Quizplus · Accepted Answer

The correct answer is A because the equilibrium Y would range from A0 to A1 if the Fed maintains a constant nominal money supply, commodity prices are fixed, and commodity demand is unstable ranging from IS0 to IS1.

Figure 13-2 -In the Figure Above, Suppose That the Fed Maintains a Fed