A Sustained Change in the Monetary Growth Rate Will

question 61

Multiple Choice

A sustained change in the monetary growth rate will

• A) immediately affect equilibrium real money balances by raising the money interest rate.
• B) eventually affect equilibrium nominal money balances by raising the money interest rate.
• C) eventually affect equilibrium real money balances by reducing the money interest rate.
• D) eventually affect equilibrium real money balances by raising the real interest rate.
• E) eventually affect equilibrium real money balances by raising the money interest rate.

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