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In the Long Run,an Increase in the Growth Rate of the Money

question 289

Multiple Choice

In the long run,an increase in the growth rate of the money supply causes _____ in the real exchange rate and _____ in the real GDP growth rate.


Definitions:

User Cost

The cost associated with the use of a service or the depletion of a capital good.

Fishery

An area with a naturally occurring population of aquatic species which can be harvested for economic purposes.

Marine Animal

An animal that inhabits the ocean or other marine environments.

User Cost

The economic cost of using a resource today, which considers the lost opportunity of using it in the future.

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