In the short run, a permanent increase

In the short run, a permanent increase in the domestic money supply causes

A.an upward shift in the DD curve, which is greater than that caused by an equal but transitory

B.a downward shift in the AA curve, which is greater than that caused by an equal but transitory

C.an upward shift in the AA curve, which is smaller than that caused by an equal but transitory

D.a downward shift in the AA curve, which is smaller than that caused by an equal but transitory

E.an upward shift in the AA curve, which is greater than that caused by an equal but transitory increase.

Answer: E