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When Nominal Money Supply Is Held Constant and the Price

Question 31

Multiple Choice

When nominal money supply is held constant and the price level increases, then


A) real money balances increase and real interest rates decrease
B) real money balances decrease and real interest rates increase
C) real money balances decrease and real interest rates remain the same
D) the AS-curve must have shifted to the right
E) both B and D

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