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    Understanding Modern Economics
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    Exam 14: The Monetary Policy Approach to Stabilization  
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    The Direct Effect of Changes in the Money Supply Is
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The Direct Effect of Changes in the Money Supply Is

Question 107

Question 107

Multiple Choice

The direct effect of changes in the money supply is that


A) bond prices change.
B) firms change their investment plans.
C) state governments change their taxation plans.
D) consumers change their spending.

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