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An Increase in the Money Supply Will Tend to Raise

Question 57

Multiple Choice

An increase in the money supply will tend to raise stock prices and


A) reduce spending by consumers as they attempt to save in order to have the funds to buy more stock.
B) increase spending by consumers as their wealth increases.
C) decrease spending by firms as they cut back on buying new plant and equipment.
D) decrease spending by firms as they cut back on inventory holdings.

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