In Figure 3-4 above, the multiplier is

The depth of the 1981-1982 recession caused the Fed to abandon its experiment in targeting ________ and move to what now appears to be ________ growth rule

A) money growth, an interest rate B) money growth, a real GDP growth C) money growth, an unemployment rate D) interest rates, a high-powered money growth E) interest rates, a nominal GDP growth

Refer to the above figure. The economy initially is at point A. The Fed unexpectedly increases the money supply. Which of the following statements are TRUE?

A) In the short run, the economy will move from point A to point C. In the long run, the economy will move to point B. B) In the short run, the economy will move from point A to point C. In the long run, the economy will move back to point A. C) In the short run, the economy will move from point A to point B. In the long run, the economy will stay at point B. D) In the short run, the economy will move from point A to point B. In the long run, the economy will move back to point A.