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In the Long Run, an Increase in the Money Supply

Question 51

Multiple Choice

In the long run, an increase in the money supply


A) decreases real interest rates, increases investment, and decreases output.
B) decreases real interest rates, but has no effect on investment or output.
C) increases output, but has no effect on real interest rates or output.
D) has no effect on real interest rates, investment or output.

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