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    Principles of Economics Study Set 3
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    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
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    An Increase in the U.S.interest Rate
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An Increase in the U.S.interest Rate

Question 312

Question 312

Multiple Choice

An increase in the U.S.interest rate


A) reduces the opportunity cost of holding dollars.
B) induces households to increase consumption.
C) shifts money demand to the right.
D) leads to an appreciation of the U.S.dollar.

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