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All Else Constant, an Increase in the Supply of Money

Question 175

Multiple Choice

All else constant, an increase in the supply of money will lead to _______


A) an increase in the equilibrium quantity of money and an increase in the equilibrium price of bonds.
B) an increase in the equilibrium quantity of money and a decrease in the equilibrium price of bonds.
C) a decrease in the equilibrium quantity of money and an increase in the equilibrium price of bonds.
D) a decrease in the equilibrium quantity of money and a decrease in the equilibrium price of bonds.

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