Lower Money Growth Tends to Cause

question 21

Multiple Choice

Lower money growth tends to cause:

• A) no change in i and r in the medium run.
• B) an increase in i in the medium run and an increase in r in the medium run.
• C) a decrease in i in the medium run and no change in r in the medium run.
• D) an increase in i in the medium run and no change in r in the medium run.
• E) no change in i in the medium run and an increase in r in the medium run.

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Definitions:

Viewthrough

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