ECON 261 Chapter Notes - Chapter 17: Classical Dichotomy, Economic Equilibrium, Money Supply
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46. Other things being equal, an increase in the supply of money
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a. increases the price level. |
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b. reduces aggregate demand. |
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c. generate significant changes in relative prices. |
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d. reduces the amount of money balances. Ā 47. As global financial markets become more intertwined, the Fed has
Ā 48. According to the quantity theory of money, Ā
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