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    An Increase in Money Supply Causes the Real Interest Rate
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An Increase in Money Supply Causes the Real Interest Rate

Question 61

Question 61

Multiple Choice

An increase in money supply causes the real interest rate to ________ and output to ________ in the short run,before prices adjust to restore equilibrium.


A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall

Correct Answer:

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