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The Fed increases the quantity of money. In the short run. the quantity of money demanded ___ and the nominal interest rate . A.

The Fed increases the quantity of money.

In the short run. the quantity of money demanded _________ and the nominal interest rate ______ .

A. Decreases: rises

B. Increases: rises

C. Decreases: falls

D. Increases: falls

E. Increases: does not change

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