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Suppose Both the Growth Rate of the Money Supply and the Velocity

Question 25

Multiple Choice

Suppose both the growth rate of the money supply and the velocity of money are fixed, then an increase in the growth rate of exports will cause


A) an upward movement along the dynamic AD curve.
B) a downward movement along the dynamic AD curve.
C) a shift of the dynamic AD curve to the left.
D) a shift of the dynamic AD curve to the right.

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