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    Foundations of Macroeconomics Study Set 1
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    Exam 12: Money, Interest, and Inflation
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    The Quantity of Money Demanded Is Proportional to
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The Quantity of Money Demanded Is Proportional to

Question 38

Question 38

Multiple Choice

The quantity of money demanded is proportional to


A) the inflation rate.
B) real GDP.
C) the price level.
D) the real interest rate.
E) the nominal interest rate.

Correct Answer:

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