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An Increase in the Money Supply Will Affect Aggregate Demand

Question 114

Multiple Choice

An increase in the money supply will affect aggregate demand


A) only if the increase in the money supply causes interest rates to rise.
B) only if the increase in the money supply causes people to buy less goods and services.
C) only if the increase in the money supply causes people to increase their saving.
D) if the increase in the money supply causes interest rates to fall and/or causes people to buy more goods and services.

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