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If Money Supply and Money Demand Both Increased by the Same

Question 51

Multiple Choice

If money supply and money demand both increased by the same amount, then:


A) the nominal interest rate would increase to twice its original value​
B) the nominal interest rate would increase by half of its original value
C) the nominal interest rate would decrease by half of its original value.
D) there would be no change in the nominal interest rate.
E) the nominal interest rate would decrease by one-third of its original value.

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