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Suppose the Money Market,drawn with the Value of Money on the Vertical

Question 32

Multiple Choice

Suppose the money market,drawn with the value of money on the vertical axis,is in equilibrium.If the money supply increases,then at the old value of money there is


A) a shortage that will increase spending.
B) a shortage that will reduce spending.
C) a surplus that will increase spending.
D) a surplus that will reduce spending.

Correct Answer:

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