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A Sustained Change in the Monetary Growth Rate Will

Question 51

Multiple Choice

A sustained change in the monetary growth rate will


A) immediately affect equilibrium real money balances by raising the money interest rate.
B) eventually affect equilibrium nominal money balances by raising the money interest rate.
C) eventually affect equilibrium real money balances by reducing the money interest rate.
D) eventually affect equilibrium real money balances by raising the real interest rate.
E) eventually affect equilibrium real money balances by raising the money interest rate.

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