Question: 5. In the short run, a permanent increase in the domestic money supply caus es A) a greater upward shift in the DD curve than

5. In the short run, a permanent increase in the domestic money supply caus es A) a greater upward shift in the DD curve than that caused by an equal, but transitory, increase. B) an smaller upward shift in the AA curve than that caused by an equal, but transitory, increase. C) a greater upward shift in the AA curve than that caused by an equal, but transitory, increase. D) a smaller downward shift in the AA curve than that caused by an equal, but transitory, in- crease E) none of the above is correct 6. In the short run A) monetary expansion causes the CA to increase and fiscal expansion causes the CA to decrease B) monetary expansion causes the CA to decrease and fiscal expansion causes the CA to decrease C) monetary expansion causes the CA to increase and fiscal expansion causes the CA to increase. D) monetary expansion causes the CA to decrease and fiscal expansion causes the CA to increase

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