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When the Growth Rate of the Money Supply Is Increased,interest

Question 65

Multiple Choice
When the growth rate of the money supply is increased,interest rates will rise immediately if the liquidity effect is ________ than the other effects and if there is ________ adjustment of expected inflation.

When the growth rate of the money supply is increased,interest rates will rise immediately if the liquidity effect is ________ than the other effects and if there is ________ adjustment of expected inflation.


A) larger; rapid
B) larger; slow
C) smaller; slow
D) smaller; rapid

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