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If the Asset Market Is to Remain in Equilibrium,then If

Question 94

Multiple Choice

If the asset market is to remain in equilibrium,then if the money supply increases,output is unchanged,the price level is unchanged,and the expected inflation rate is unchanged,then


A) the real interest rate must rise.
B) the real interest rate must decline.
C) the nominal interest rate must rise.
D) the inflation rate must rise.

Correct Answer:

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