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In the Lagos-Wright Model, If Money Growth Decreases, Then

Question 2

Multiple Choice

In the Lagos-Wright model, if money growth decreases, then


A) consumption of buyers falls, consumption of sellers rises, and the nominal interest rate falls.
B) consumption of buyers falls, consumption of sellers falls, and the nominal interest rate rises.
C) consumption of buyers rises, consumption of sellers rises, and the nominal interest rate falls.
D) consumption of buyers falls, consumption of sellers falls, and the nominal interest rate falls.
E) consumption of buyers rises, consumption of sellers rises, and the nominal interest rate rises.

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