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For This Question,assume That the Economy Is Initially Operating at the Natural

Question 20

Multiple Choice

For this question,assume that the economy is initially operating at the natural level of output.A monetary expansion will cause


A) no change in the real wage in the medium run.
B) an increase in investment in the medium run.
C) a reduction in the interest rate in the medium run.
D) no change in the nominal wage in the medium run.

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