Multiple Choice
Figure 7-1
-Employing Figure 7-1 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.
Correct Answer:
Verified
Correct Answer:
Verified
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