(Answered) 14. From Figure 2 we see that in the monetary intertemporal model due to the specific shock (e to j…

14.
From Figure 2 we see that in the monetary intertemporal model due to the specific shock (e to j or j to e, it does not matter):
A. Money demand is acyclical.
B. Money is neutral.
C. Price level is countercyclical.
Money supply targeting guarantees price stability
Figure 215.
From Figure 2 we infer that in the monetary intertemporal model (from e to j points), monetary authorities that care about price stability should:
A. increase money supply after increases in future total factor productivity.
B. decrease money supply after increases in future total factor productivity.
C. increase money supply after increases in current total factor productivity.
D. decrease money supply after increases in current total factor productivity