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Question 75

Multiple Choice

-Refer to figure above to answer this question.What is the effect of an increase in the money supply of 20? A) Money demand increases by 20. B) The quantity of money increases by 40. C) The rate of interest increases by 2 percentage points. D) Investment spending increases by 10. E) Investment spending decreases by 20.
-Refer to figure above to answer this question.What is the effect of an increase in the money supply of 20?


A) Money demand increases by 20.
B) The quantity of money increases by 40.
C) The rate of interest increases by 2 percentage points.
D) Investment spending increases by 10.
E) Investment spending decreases by 20.

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