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Homework answers / question archive / An increase in the money supply will tend to:  a

An increase in the money supply will tend to:  a

Economics

An increase in the money supply will tend to: 

a.lower the interest rate and lower equilibrium real GDP

b.lower the interest rate and increase equilibrium real GDP

c.increase the interest rate and increase equilibrium real GDP

d.increase the interest rate and lower equilibrium real GDP

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 Correct option is b). lower the interest rate and increase equilibrium real GDP.

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