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TD Al Hassan All Ahmed ( 41 11 42 11 43 11 44 11 45 Moodle Ob. Decrease increase. 46 47 Finish attempt- Assuming expected inflation is zero, real output to (Note this question refers to the results from an increase in the money supply in the short run situation using the AD/AS Models) in the short run, an increase in the nominal money supply will cause Time left 1:08:50 Answer saved Points out of 1.50 P Flag Select one: e a. Remain unchanged O b. Decrease. O G. Increase. question the nominal money supply will cause 34 Answer saved Points out of Assuming expected inflation is zero, in the short run, an increase in the nominal interest rate to (Note this question refers to the results from an increase in the money supply in the short run situation using the AD/AS Models) using the ADIAsters the F Flag Select one a. Increase O b. Remain unchanged c. Decrease. inflation is zero, in the short run, an increase in the nominal money supply will cause Question 35 Answer saved Points out of 1.50 F Flag Assuming expected the level of planned investment to (Note this question refers to the results from an increase in the money supply in the short run situation using the AD/AS Models) Select one a. Increase O b. Remain unchanged. . a. Increase C. Decrease.

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Answer #1

(Question 33) Option (c)

Increase in money supply will decrease real interest rate, which will increase investment and aggregate demand. Higher aggregate demand will shift the AD curve rightward, increasing both price level and real GDP (output).

(Question 34) Option (b)

Increase in money supply will decrease real interest rate. But as price level will increase, nominal interest rate (= real interest rate x price level) will remain unchanged.

(Question 33) Option (a)

Increase in money supply will decrease real interest rate, which will increase planned investment.

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