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The Introduction of Automatic Teller Machines, Which Reduces the Demand

Question 114

Multiple Choice

The introduction of automatic teller machines, which reduces the demand for money, will, according to the Mundell-Fleming model with fixed exchange rates, lead to:


A) a rise in income and net exports.
B) no change in income or net exports.
C) no change in income but a rise in net exports.
D) a rise in income but no change in net exports.

Correct Answer:

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