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When the Nominal Interest Rate Increases, the

Question 110

Multiple Choice

When the nominal interest rate increases, the


A) demand for money increases and the demand for money curve shifts rightward.
B) supply of money curve shifts rightward.
C) quantity of money demanded decreases and there is a movement upward along the demand for money curve.
D) demand for money decreases and the demand for money curve shifts leftward.
E) quantity of money demanded increases and there is a movement upward along the demand for money curve.

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