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    International Economics Study Set 9
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    Exam 15: Exchange Rates II: the Asset Approach in the Short Run
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    In the Short Run, Ceteris Paribus, an Expanded Money Supply
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In the Short Run, Ceteris Paribus, an Expanded Money Supply

Question 53

Question 53

Multiple Choice

In the short run, ceteris paribus, an expanded money supply leads to:


A) a higher nominal interest rate.
B) no change in the nominal interest rate.
C) a lower nominal interest rate.
D) an increase in the exchange rate.

Correct Answer:

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