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If Nominal Money Balances Increase from $2 Billion to $3

Question 45

Multiple Choice

If nominal money balances increase from $2 billion to $3 billion, while the price level increases from 100 to 200, real money balances will

A) have increased by 25%.
B) have decreased by 25%.
C) have increased by 100%.
D) have decreased by 100%.

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