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An increase in the money multiplier from a value of 2.3 to 2.5 leads to an increase in the money supply. Which one of the
An increase in the money multiplier from a value of 2.3 to 2.5 leads to an increase in the money supply. Which one of the following holds true in response to this change?
| The nominal interest rate will decrease. |
| Consumption expenditure will fall. |
| The nominal interest rate will increase. |
| Aggregate output will fall. |
| The general price level will fall. |
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Exploring Economics
Authors: Robert L Sexton
5th Edition
978-1439040249, 1439040249
