Figure 7-1
-Employing Figure 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.

Question

Figure 7-1 
-Employing Figure 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.

Quizplus · Accepted Answer

The Answer of Figure 7-1 
-Employing Figure 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.

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