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    Principles of Money Banking
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    Exam 27: Rational Expectations: Theory and Policy Implications
  5. Question
    If Wages and Prices Are Flexible, an Anticipated Change in the Money
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If Wages and Prices Are Flexible, an Anticipated Change in the Money

Question 4

Question 4

Multiple Choice

If wages and prices are flexible, an anticipated change in the money supply has no effect on


A) money demand.
B) nominal interest rates.
C) real GDP.
D) the inflation rate.

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