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Suppose That the Money Supply Increases

Question 20

Multiple Choice

Suppose that the money supply increases. In the short run, this increases prices according to


A) both the short-run Phillips curve and the aggregate demand and aggregate supply model.
B) neither the short-run Phillips curve nor the aggregate demand and aggregate supply model.
C) the short-run Phillips curve, but not the aggregate demand and aggregate supply model.
D) the aggregate demand and aggregate supply model but not the short-run Phillips curve.

Correct Answer:

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