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    Exam 5: Inflation: Its Causes, Effects, and Social Costs
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    In the Classical Model, According to the Quantity Theory and the Fisher
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In the Classical Model, According to the Quantity Theory and the Fisher

Question 8

Question 8

Multiple Choice

In the classical model, according to the quantity theory and the Fisher equation, an increase in money growth increases:


A) output.
B) velocity
C) the nominal interest rate.
D) the real interest rate.

Correct Answer:

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