Question: Which of the following would decrease the price level ceteris parbus? A. An increase in the demand to hold currency relative to bank deposits B.

Which of the following would decrease the price level ceteris parbus?

A. An increase in the demand to hold currency relative to bank deposits

B. A decrease in the division of labor.

C. An increase in loanable reserves held by the banks

D.A decrease in required reserves by the Federal Reserve.

E. An increase in the money multiplier.

Which of the following is possible?

A. An increase in the relative price of shoes causes a change in the aggregate supply curve

B. An increase in the relative price of shoes causes a change in the demand for shoes.

C. An increase in the nominal price of shoes causes a change in the supply of shoos

D. An increase in the nominal price level causes a change in the aggregate demand

E. This is a trick question, none of the above are possible

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