Consider the following sequence of events: price level ↑ ⇒ demand for money ↑ ⇒ equilibrium interest rate ↑ ⇒ quantity of goods and services demanded ↓ Τhis sequence explains why the a. aggregate-demand curve shifts rightward in response to a monetary injection. b. aggregate-demand curve shifts leftward in response to a monetary injection. c. aggregate-demand curve slopes downward. d. money-supply curve is vertical.
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