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    Exam 21:Output, Inflation, and Monetary Policy
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    One Way Inflation Reduces Aggregate Demand Is By
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One Way Inflation Reduces Aggregate Demand Is By

Question 7

Question 7

Multiple Choice

One way inflation reduces aggregate demand is by:


A) increasing nominal GDP.
B) increasing velocity.
C) reducing real balances.
D) increasing wealth.

Correct Answer:

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