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

Question 37

Multiple Choice

In a Keynesian model,an increase in the money supply will increase GDP by


A) increasing the rate of interest, thereby increasing savings.
B) lowering the rate of interest and shifting the investment function upward.
C) causing prices to rise and thereby trading off inflation against unemployment.
D) causing an increase in government expenditures.
E) shifting the transactions demand for money.

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