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How Will an Increase in the Money Supply Affect Money

Question 78

Multiple Choice

How will an increase in the money supply affect money markets?  


A)  An increase in the money supply will increase the demand for money at each interest rate. 
B)  An increase in the money supply will decrease the demand for money at each interest rate. 
C)  An increase in the money supply will lead people to try to exchange money for interest-bearing assets. 
D)  An increase in the money supply will lead people to try to exchange interest-bearing assets for money.

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