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Which of the following is true, according to monetarists? Multiple Choice Individuals hold idle balances for rational reasons. Changes in the money supply have no
Which of the following is true, according to monetarists?
Multiple Choice
- Individuals hold idle balances for rational reasons.
- Changes in the money supply have no effect on real variables.
- The velocity of money increases as real GDP increases.
- If the economy is at full employment, increasing the money supply will increase the price level.
- The total demand for money equals the asset demand for money.
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