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If the Demand for Money Increases, but the Bank of Canada

Question 50

Multiple Choice

If the demand for money increases, but the Bank of Canada keeps the money supply the same, then in the short run output will:


A) fall, and in the long run prices will remain unchanged.
B) remain unchanged, and in the long run prices will fall.
C) remain unchanged, and in the long run prices will remain unchanged.
D) fall, and in the long run prices will fall.

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