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When the Nominal Interest Rate Increases, the

Question 114

Multiple Choice

When the nominal interest rate increases, the


A) quantity of money demanded increases and there is a movement upward along the demand for money curve.
B) quantity of money demanded decreases and there is a movement upward along the demand for money curve.
C) demand for money increases and the demand for money curve shifts rightward.
D) demand for money decreases and the demand for money curve shifts leftward.
E) supply of money curve shifts rightward.

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