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Starting from a Position Where the Nation's Money Demand Equals

Question 49

Multiple Choice

Starting from a position where the nation's money demand equals the money supply,and its balance of payments is in equilibrium,economic theory suggests that the nation's balance of payments would move into a deficit position if there occurred in the nation a:


A) Decrease in the money supply
B) Increase in the money demand
C) Decrease in the money demand
D) None of the above

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