Multiple Choice
An increase in money supply causes the real interest rate to ________ and output to ________ in the short run,before prices adjust to restore equilibrium.
A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q56: The aggregate demand curve shows the combinations
Q57: An increase in expected inflation causes the
Q58: The IS curve<br>A)is horizontal.<br>B)is vertical.<br>C)slopes downward.<br>D)slopes upward.
Q59: An adverse supply shock that is permanent
Q60: The probably effect of introducing an increased
Q62: A rise in the price of a
Q63: Any change that reduces desired saving relative
Q64: Which of the following curves in the
Q65: Which market adjusts the quickest in response
Q66: Which of the following changes shifts the