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Suppose Money Demand Increases and the Bank of Canada Attempts

Question 94

Multiple Choice

Suppose money demand increases and the Bank of Canada attempts to keep interest rates stable.What will be the effect on money supply?  


A)  The money supply will increase. 
B)  The money supply will decrease. 
C)  The money supply will stay the same. 
D)  The money supply will first increase, and then decrease.

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