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If Real Money Demand Doubles While the Nominal Money Supply

question 96

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If real money demand doubles while the nominal money supply is unchanged,what happens to the price level?

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Definitions:

Price Discrimination

occurs when a seller charges different prices to different buyers for goods of like grade and quality, without justification.

Discriminatory Price

A pricing strategy where different prices are charged for the same product or service in different markets or to different segments of consumers without a corresponding difference in cost.

Clayton Act

An antitrust law in the United States that prohibits certain actions leading to anti-competitiveness, such as price discrimination and exclusive deals.

Mobile-Network Operator

A company that provides wireless communications services to mobile phone subscribers.

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