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In the Short Run,a Permanent Increase in the Domestic Money

Question 11

Multiple Choice

In the short run,a permanent increase in the domestic money supply causes


A) a greater upward shift in the DD curve than that caused by an equal,but transitory,increase.
B) a greater downward shift in the AA curve than that caused by an equal,but transitory,increase.
C) an smaller upward shift in the AA curve than that caused by an equal,but transitory,increase.
D) a smaller downward shift in the AA curve than that caused by an equal,but transitory,increase.
E) a greater upward shift in the AA curve than that caused by an equal,but transitory,increase.

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