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    Macroeconomics Study Set 41
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    Exam 8: Money, the Price Level, and Inflation
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    In the Short Run, When the Fed Increases the Quantity
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In the Short Run, When the Fed Increases the Quantity

Question 562

Question 562

Multiple Choice

In the short run, when the Fed increases the quantity of money


A) the supply of money curve shifts leftward.
B) bond prices rise and the interest rate falls.
C) bond prices fall and the interest rate rises.
D) the demand for money increases.

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