As the economy enters a strong expansion in which real GDP increases, which of the following occurs?
A) The demand for money curve shifts leftward.
B) The demand for money increases and there is a movement downward along the demand for money curve.
C) The demand for money curve shifts rightward.
D) The nominal interest rate falls as the demand for money curve shifts leftward.
E) The demand for money decreases and there is a movement upward along the demand for money curve.
Correct Answer:
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