If the inflation rate is higher than expected, real income is redistributed from lenders to borrowers

In Figure 4-5 above, at what point do we find the commodity market in equilibrium while the money market is not?

A) A B) B C) C D) D E) E

A horizontal aggregate supply curve reflects the assumption that the

A) price level is constant. B) velocity of money is constant. C) saving rate is equal to zero. D) economy is at full employment.