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Compared with a Closed Economy,an Increase in the Growth Rate

Question 7

Multiple Choice

Compared with a closed economy,an increase in the growth rate of the money supply in an open economy increases aggregate demand by a:


A) larger amount only in the short run.
B) smaller amount only in the short run.
C) larger amount in both the short run and the long run.
D) smaller amount in both the short run and the long run.

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