Equilibrium exists where the price level is 125 and the, Ask an Expert

Economics

Equilibrium exists where the price level is 1.25 and the money supply equals 21 billion. What is a new possible equilibrium when the Federal Reserve buys some government bonds?

A. price level = 1.25, money supply = 21 billion

B. price level = 4, money supply = 21 billion

C. price level = 9, money supply = 25 billion

D. price level = 2, money supply = 25 billion

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91559696

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