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Since the Short-Run Increase in the Aggregate Price Level That

Question 90

Multiple Choice

Since the short-run increase in the aggregate price level that follows a monetary expansion is smaller than the ensuing long-run increase, it follows that:


A) money is neutral in the short run.
B) in the short run, the interest rate remains constant.
C) in the long run, the real money supply increases.
D) in the short run, the real money supply increases.

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