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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Monetary Policy Influences Aggregate Demand
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    An Increase in the U.S.interest Rate
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An Increase in the U.S.interest Rate

Question 10

Question 10

Multiple Choice

An increase in the U.S.interest rate


A) raises the opportunity cost of holding dollars.
B) induces households to increase consumption.
C) shifts money demand to the right.
D) leads to a depreciation of the U.S.dollar.

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