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    Principles of Economics Study Set 1
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    Exam 26: Stabilizing the Economy: The Role of the Fed
  5. Question
    Lower Nominal Interest Rates ________ the Amount of Money Demanded
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Lower Nominal Interest Rates ________ the Amount of Money Demanded

Question 121

Question 121

Multiple Choice

Lower nominal interest rates ________ the amount of money demanded and lower real income ________ the amount of money demanded.


A) increase; increases
B) increase; decreases
C) increase; does not change
D) decrease; decreases

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