Consider an Initial IS-LM Equilibrium in Which the Nominal Money

Multiple Choice

Consider an initial IS-LM equilibrium in which the nominal money supply is 1000 and the price level is 1.0.As the price level falls to 0.5,then to 0.333,and then to 0.25,the effect on real balances means that AD

A) becomes flatter.
B) shifts upward by less and less.
C) shifts downward by less and less.
D) shifts downward by the same amount.
E) becomes upward-sloping at price levels below 1.0.