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Using the Liquidity-Preference Model,when the Federal Reserve Increases the Money

Question 75

Multiple Choice

Using the liquidity-preference model,when the Federal Reserve increases the money supply,


A) ​the equilibrium interest rate decreases.
B) ​the aggregate-demand curve shifts to the left.
C) ​the quantity of goods and services demanded is unchanged for a given price level.
D) ​the short-run aggregate-supply curve shifts to the right.

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