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Should the Nominal Money Supply Rise by Six Percent,real Balances

Question 143

Multiple Choice

Should the nominal money supply rise by six percent,real balances would remain unaffected if at the same time the price level ________ by six percent,which translates into the aggregate demand diagram as ________.


A) rises,a movement upward along AD by six percent
B) rises,an upward shift of AD by six percent
C) rises,a movement downward along AD by six percent
D) falls,a movement downward along AD by six percent
E) falls,a downward shift of AD by six percent

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