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A Correctly Anticipated Increase in the Quantity of Money, in an Economy

Question 70

Multiple Choice

A correctly anticipated increase in the quantity of money, in an economy with an unchanging long-run aggregate supply, will result in


A) a rise in the price level and an increase in real GDP.
B) a rise in the price level and a decrease in real GDP.
C) a proportional rise in the price level and no change in real GDP.
D) no change in the price level and an increase in real GDP.
E) no change in the price level and no change in real GDP.

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