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An Increase in the Money Supply Will

Question 26

Multiple Choice

An increase in the money supply will


A) Reduce interest rates and increase aggregate demand.
B) Reduce interest rates and decrease aggregate demand.
C) Raise interest rates and increase aggregate demand.
D) Raise interest rates and decrease aggregate demanD.A lower interest rate will spur additional spending by businesses through investment,as well as increased consumption of interest-sensitive durable consumer goods.

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