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Because Money Serves as a Medium of Exchange, an Increase

Question 114

Multiple Choice

Because money serves as a medium of exchange, an increase in real GDP:


A) increases the buying and selling of goods and services and so increases the demand for money.
B) increases the buying and selling of goods and services and so decreases the demand for money.
C) decreases the buying and selling of goods and services and so increases the demand for money.
D) decreases the buying and selling of goods and services and so decreases the demand for money.

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