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In the Long Run, a Decrease in the Growth Rate

Question 155

Multiple Choice

In the long run, a decrease in the growth rate of the money supply will cause


A) nominal interest rates to decrease and decrease the real interest rate.
B) nominal interest rates to increase and will increase the real interest rate.
C) nominal interest rates to increase and will not affect the real interest rate.
D) nominal interest rates to decrease and will not affect the real interest rate.

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