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    Exam 9: Exploring Financial Markets and Hedging Strategies
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    According to the Liquidity Effect an Increase in Money Supply
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According to the Liquidity Effect an Increase in Money Supply

Question 3

Question 3

Multiple Choice

According to the liquidity effect an increase in money supply growth relative to money demand in the short run leads to:


A) Higher interest rates
B) Lower interest rates
C) Higher inflation
D) Lower inflation
E) None of the above

Correct Answer:

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