Author Question: If the Fed increases the quantity of money, then A) aggregate demand increases and the AD curve ... (Read 86 times)

madam-professor · **on:** Jun 29, 2018

If the Fed increases the quantity of money, then

A) aggregate demand increases and the AD curve shifts rightward.
B) the quantity of real GDP demanded decreases and there is a movement up along the AD curve.
C) both the aggregate demand curve and the aggregate supply curve shift leftward.
D) aggregate demand decreases and the AD curve shifts leftward.
E) the quantity of real GDP demanded increases and there is a movement down along the AD curve.

Question 2

In the long run, when the Fed increases the quantity of money, the

A) price level falls.
B) nominal interest rate falls.
C) price level rises.
D) real interest rate rises.
E) demand for money decreases.