If real money demand increases 5% and real money supply increases by 10%, by about how much does the price level change?
(a) Falls by 5%.
(b) Unchanged.
(c) Rises by 2%.
(d) Rises by 5%.
Answer: D
If real money demand increases 5% and real money supply increases by 10%, by about how much does the price level change?
(a) Falls by 5%.
(b) Unchanged.
(c) Rises by 2%.
(d) Rises by 5%.
Answer: D
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