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For Interest Rates to Remain Stable During Economic Contractions,monetary Authorities

Question 29

Multiple Choice

For interest rates to remain stable during economic contractions,monetary authorities should


A) reduce the demand for money
B) increase the demand for money
C) match the rate of growth in the money supply to the rate of growth in nominal GDP
D) reduce the rate of growth in the money supply below the rate of growth in the demand for money
E) slow the growth of the money supply,or even let the money supply shrink

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