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Which of the Following Statements Is False

Question 1

Multiple Choice

Which of the following statements is false?


A) Along a given aggregate demand curve for real GDP, the real money balance (M/P) is constant.
B) Along a given aggregate demand curve for real GDP, the nominal money balance (M) is constant.
C) Along a given aggregate demand curve for real GDP, the real money balance (M) increases as price-level decreases.
D) Along a given aggregate demand curve for real GDP, taxes and government expenditures are constant.

Correct Answer:

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