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  4. Exam
    Exam 17: Monetary Theory I- the Aggregate Demand and Aggregate Supply Model
  5. Question
    How Does an Increase in the Price Level Result in Higher
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How Does an Increase in the Price Level Result in Higher

Question 17

Question 17

Multiple Choice

How does an increase in the price level result in higher interest rates?


A) It increases the real money supply.
B) It decreases the real money supply.
C) It increases the real money demand.
D) It decreases the real money demand.

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