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-Refer to the Above Figure

Question 305

Multiple Choice

-Refer to the above figure. Suppose the economy is in equilibrium at point A. If rational expectations exist, an increase in aggregate demand caused by an anticipated increase in the money supply will cause the economy to A) stay at point A. B) move to point B. C) move to point C. D) move to point D.
-Refer to the above figure. Suppose the economy is in equilibrium at point A. If rational expectations exist, an increase in aggregate demand caused by an anticipated increase in the money supply will cause the economy to


A) stay at point A.
B) move to point B.
C) move to point C.
D) move to point D.

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