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In Order for the Long- Run Neutrality of Money to Hold

Question 5

Multiple Choice

In order for the long- run neutrality of money to hold, an increase in money supply must cause:


A) the money demand curve to shift upwards enough to raise the interest rate.
B) the money demand curve to shift down to keep the interest rate constant.
C) the money demand curve to shift downwards enough to lower the interest rate.
D) the money demand curve to shift up to keep the interest rate constant.

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