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If the Demand for Money Depends on the Interest Rate

Question 92

Multiple Choice

If the demand for money depends on the interest rate, then a ________ in the money supply will increase nominal GDP by ________.

A) 5% increase; more than 5%
B) 5% increase; less than 5%
C) 5% decrease; more than 5%
D) 5% decrease; exactly 5%

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