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Which of the Following Statements Is FALSE

question 2

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Which of the following statements is FALSE?


Definitions:

Monetary Rule

The money supply may grow at a specified annual percentage rate, generally about 3–4 percent.

Money Supply

The total quantity of money available in the economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Recessionary Gap

This occurs when equilibrium GDP is less than full-employment GDP.

Aggregate Demand

The total demand for all goods and services within an economy at a given overall price level and in a given time period.

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