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In a Keynesian Model,an Increase in the Money Supply Results

Question 31

Multiple Choice

In a Keynesian model,an increase in the money supply results in


A) a decrease in the interest rate and increases in investment and GDP.
B) decreases in the interest rate, investment, and GDP.
C) increases in the interest rate, investment, and GDP.
D) an increase in the interest rate with decreases in both investment and GDP.
E) a decrease in the interest rate, with the effect on investment and GDP uncertain.

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