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Lower Money Growth Tends to Cause

Question 3

Multiple Choice

Lower money growth tends to cause:


A) no change in i and r in the medium run.
B) an increase in i in the medium run and an increase in r in the medium run.
C) a decrease in i in the medium run and no change in r in the medium run.
D) an increase in i in the medium run and no change in r in the medium run.
E) no change in i in the medium run and an increase in r in the medium run.

Correct Answer:

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