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    Business
  3. Study Set
    Intermediate Macroeconomics
  4. Exam
    Exam 16: Money and Business Cycles I: the Price-Misperceptions Model
  5. Question
    An Increase in the Money Supply
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An Increase in the Money Supply

Question 7

Question 7

Multiple Choice

An increase in the money supply:


A) can affect real variables temporarily in the short run.
B) can not affect nominal variables in the short run.
C) can affect real variables in the long run.
D) all of the above.

Correct Answer:

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