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The Long Run Effects of Money Supply Change Has

Question 47

Multiple Choice

The long run effects of money supply change has

A) an ambiguous effect on the long-run values of the interest rate or real output, a proportional change in the price level's long-run value in the opposite direction.
B) a proportional effect on the long-run values of the interest rate or real output, a proportional change in the price level's long-run value in the same direction.
C) no effect on the long-run values of the interest rate or real output, a proportional change in the price level's long-run value in the same direction.
D) no effect on the long-run values of the interest rate or real output, no change in the price level's long-run value.
E) an ambiguous effect on the long-run values of the interest rate or real output, a disproportional change in the price level's long-run value in the same direction.

Correct Answer: