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    Principles of Macroeconomics Study Set 8
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    Exam 20: Aggregate Demand and Aggregate Supply: Explaining Short-Run Economic Fluctuations
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    According to the Classical Model,an Increase in the Money Supply
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According to the Classical Model,an Increase in the Money Supply

Question 15

Question 15

Multiple Choice

According to the classical model,an increase in the money supply causes


A) output to increase in the long run.
B) the unemployment rate to fall in the long run.
C) prices to rise in the long run.
D) interest rates to fall in the long run.

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