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answer the following 28. Suppose that money demand is falling at 2 percent per year while the money Supply is rising at 6 percent per

answer the following

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28. Suppose that money demand is falling at 2 percent per year while the money Supply is rising at 6 percent per year. What is happening to the price level? A. Increases by 4 percent. B. Decreases by 4 percent. C. Decreases by 8 percent. D. Increases by 8 percent. E. None of the above. 40. If the monetary policy rule is given by r = 1.0+0.51r. then :- represents , ...... A. The autonomous component of the real interest rate set by the central bank. B. The responsiveness of the nominal interest rate to the ination rate. C. The real interest rate that is not by the central bank. D. Only (A) and (B) of the above. E. None of the above

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