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An increase in the money supply will tend to:  a

Economics Aug 14, 2020

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

Expert Solution

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

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