Multiple Choice
Consider an initial IS-LM equilibrium point which corresponds to a point labeled "A" on the current AD curve.
-Refer to the information above.If the nominal money supply falls by 4 percent,accompanied by a 4 percent fall in the price level,the resulting IS-LM equilibrium corresponds to a point in the AD diagram
A) which is exactly point A again.
B) 4 percent straight above A on a new AD curve.
C) 4 percent straight below A on a new AD curve.
D) directly to the right of A on a new AD curve.
E) directly to the left of A on a new AD curve.
Correct Answer:

Verified
Correct Answer:
Verified
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