According to the Long-Run Monetary Model, We Can Rearrange Terms

question 114

Multiple Choice

According to the long-run monetary model, we can rearrange terms in the money demand/supply in our long-run relationship to show that when the nominal supply of money is increased, ceteris paribus,:

• A) the demand for money is decreased.
• B) the price level is increased.
• C) real income is increased.
• D) the price level is decreased.

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