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If the Fed Increases the Money Supply,GDP

Question 152

Multiple Choice

If the Fed increases the money supply,GDP


A) increases because the resulting increase in the interest rate leads to a decrease in investment
B) increases because the resulting decrease in the interest rate leads to an increase in investment
C) decreases because the resulting increase in the interest rate leads to a decrease in investment
D) decreases because the resulting increase in the interest rate leads to an increase in investment
E) decreases because the resulting decrease in the interest rate leads to an increase in investment

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