Solved: A 10% decrease in the money supply will change the aggregate price level in the

Chapter 0, Problem 3

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QUESTION:

A 10% decrease in the money supply will change the aggregate price level in the long run by a. zero. b. less than 10%. c. 10%. d. 20%. e. more than 20%.

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QUESTION:

A 10% decrease in the money supply will change the aggregate price level in the long run by a. zero. b. less than 10%. c. 10%. d. 20%. e. more than 20%.

ANSWER:

Step 1 of 2

The money supply and the price have a positive relation. With the rise in money supply, the price also rises and vice versa.

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