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.

C

Economics

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The price of a good is above the equilibrium price,

a. there is a surplus and the price will rise. b. there is a surplus and the price will fall. c. there is a shortage and the price will rise d. there is a shortage and the price will fall. e. the quantity demanded is equal to the quantity supplied and the price remains unchanged.

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What is the Principal of Optimization at the Margin? Explain with an example

What will be an ideal response?

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