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If the money supply is perfectly inelastic and there is an increase in price level which shifts the money demand curve, Question 3Answer a. then
If the money supply is perfectly inelastic and there is an increase in price level which shifts the money demand curve, Question 3Answer a. then quantity of money traded in equilibrium will remain the same; but the equilibrium interest rate will increase b. then quantity of money traded in equilibrium will decrease; and the equilibrium interest rate will decrease c. then quantity of money traded in equilibrium will increase; but the equilibrium interest rate will decrease d. then quantity of money traded in equilibrium will decrease; but the equilibrium interest rate will increase
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