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Suppose that the Fed will increase the money supply. Which of the fo.pdf

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Suppose that the Fed will increase the money supply. Which of the following would make the effect of this increase on aggregate demand larger in the short-run? A. the interest rate falls and SRAS relatively steep B. the interest rate rises and SRAS is relatively steep C. the interest rate falls and SRAS is relatively flat D. the interest rate rises and SRAS is relatively flat.

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Suppose that the Fed will increase the money supply. Which of the following would make the effect of this increase on aggregate demand larger in the short-run? A. the interest rate falls and SRAS relatively steep B. the interest rate rises and SRAS is relatively steep C. the interest rate falls and SRAS is relatively flat D. the interest rate rises and SRAS is relatively flat

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Suppose that the Fed will increase the money supply. Which of the fo.pdf

  • 1. Suppose that the Fed will increase the money supply. Which of the following would make the effect of this increase on aggregate demand larger in the short-run? A. the interest rate falls and SRAS relatively steep B. the interest rate rises and SRAS is relatively steep C. the interest rate falls and SRAS is relatively flat D. the interest rate rises and SRAS is relatively flat