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Changes in the Money Supply Are Important Because

Question 7

Multiple Choice

Changes in the money supply are important because


A) there is a relationship between changes in the money supply and changes in government spending.
B) there is a relationship between changes in the money supply and changes in nominal GDP.
C) there is an inverse relationship between changes in the money supply and the inflation rate.
D) there is a direct relationship between changes in the money supply and changes in interest rates.

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