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A 5 Percent Reduction in the Money Supply Will, According

Question 78

Multiple Choice

A 5 percent reduction in the money supply will, according to most economists, reduce prices 5 percent:


A) in both the short run and the long run.
B) in neither the short nor the long run.
C) in the short run but lead to unemployment in the long run.
D) in the long run but lead to unemployment in the short run.

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