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The Effects of an Increase in Real Money Demand on an Economy

Question 146

Multiple Choice

The effects of an increase in real money demand on an economy


A) is an argument against flexible exchange rates.
B) is an argument in favor of flexible exchange rates.
C) shows the difficulties in determining which exchange rate regime is better.
D) is an argument in favor of flexible exchange rates only in the short run.
E) is an argument against flexible exchange rates only in the short run.

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