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Suppose the Fed Permanently Increases the Money Supply by a Given

Question 300

Multiple Choice

Suppose the Fed permanently increases the money supply by a given amount. Which of the following is (are) most likely to occur in the long run as a result of this monetary policy action?


A) an increase in employment
B) a reduction in the real interest rate
C) a decrease in unemployment
D) all of the above
E) none of the above

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