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According to the Classical View, to Prevent Price-Level Changes When

Question 57

Multiple Choice

According to the classical view, to prevent price-level changes when real output is growing by 3 per cent per year, the money supply must

A) Decrease by 3 per cent per year.
B) Increase by 3 per cent per year.
C) Increase by more than 3 per cent per year.
D) Remain constant.

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