Which point in the figure above is an attainable combination that would have unemployed resources?
A) point A
B) point B
C) point C
D) point D
E) point A and point B
Question 2
Other things the same, if the Fed increases the quantity of money, the ________ because ________.
A) nominal interest rate decreases; the supply of money curve shifts rightward
B) nominal interest rate increases; the supply of money curve shifts rightward
C) nominal interest rate does not change; only the real interest rate is effected
D) nominal interest rate decreases; the supply of money curve shifts leftward
E) nominal interest rate increases; the supply of money curve shifts leftward
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