Starting from a Position Where the Nation's Money Demand Equals

question 21

Multiple Choice

Starting from a position where the nation's money demand equals the money supply and its balance of payments is in equilibrium,economic theory suggests that the nation's balance of payments would move into a surplus position if there occurred in the nation:

• A) A decrease in the money supply
• B) An increase in the money supply
• C) A decrease in the money demand
• D) None of the above

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