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In the long run, a permanent increase in the level of money supply A ) has an ambiguous effect on the long - run values
In the long run, a permanent increase in the level of money supply
A has an ambiguous effect on the longrun values of the interest rate and output, and
leads to a proportional decrease in the longrun price level.
B has a proportional effect on the longrun values of the interest rate and output, and
leads to a proportional increase in the longrun price level
C has no effect on the longrun values of the interest rate and output, and leads to a
proportional increase in the longrun price level
D has no effect on the longrun values of the interest rate and output, and does not
change the longrun price level
E has an ambiguous effect on the longrun values of the interest, output, and the long
run price level
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