A Doubling of the Nominal Money Supply Would Create a New

Multiple Choice

A doubling of the nominal money supply would create a new AD curve at double the vertical position of the original AD curve because

A) at each price level there is a decrease in autonomous spending.
B) each output level requires the same real money supply as in the original situation.
C) the rise in money supply causes increased expectation of further price increases and investment declines.
D) the rise in the money supply causes an excess supply of money and generates rising interest rates.