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If the Fed Expands the Money Supply,a Short-Run Aggregate Supply

Question 20

Multiple Choice

If the Fed expands the money supply,a short-run aggregate supply curve __________ would yield the largest short-run increase in the price level.


A) that is vertical
B) with a steep slope
C) that coincides with the 45-degree line
D) that is relatively flat
E) that is horizontal

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