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If the Reserve Bank Increases the Quantity of Money, Then

Question 6

Multiple Choice

If the Reserve Bank increases the quantity of money, then


A) the quantity of real GDP demanded decreases and there is a movement up along the AD curve.
B) the quantity of real GDP demanded increases and there is a movement down along the AD curve.
C) both the aggregate demand curve and the aggregate supply curve shift leftward.
D) aggregate demand decreases and the AD curve shifts leftward.
E) aggregate demand increases and the AD curve shifts rightward.

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