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If the Money Supply Is Increased, The

Question 26

Multiple Choice

If the money supply is increased, the:


A) interest rate will increase, which will increase the quantity of money demanded to restore equilibrium
B) interest rate will increase, which will decrease the quantity of money demanded to restore equilibrium
C) price level will decrease, which will decrease the quantity of money demanded to restore equilibrium
D) price level will increase which will increase the quantity of money demanded to restore equilibrium

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