Refer to Figure 12-9. Identify the short-run shut down point for the firm

Refer to the above figure. Suppose point A is the original equilibrium. If there is an increase in the money supply, the new long-run equilibrium is given by point

A) A. B) B. C) C. D) D.

An increase in the supply of bonds leads to

A) an increase in the price of bonds, a decrease in the interest rate, and an increase in aggregate demand. B) an increase in the price of bonds, an increase in the interest rate, and an increase in aggregate demand. C) a decrease in the price of bonds, an increase in the interest rate, and an increase in aggregate demand. D) a decrease in the price of bonds, an increase in the interest rate, and a decrease in aggregate demand.