If everything becomes cheaper causing the price level to fall, then ______ and interest rates will ______.a) money demand shifts left; fallb) money demand shifts right; risec) money supply shifts left; rised) money supply shifts right; fall
If everything becomes cheaper causing the price level to fall, then ______ and interest rates will ______.a) money demand shifts left; fallb) money demand shifts right; risec) money supply shifts left; rised) money supply shifts right; fall
Chapter16: Monetary Policy
Section: Chapter Questions
Problem 5SQ
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Question
If everything becomes cheaper causing the price level to fall, then ______ and interest rates will ______.
a) money demand shifts left; fall
b) money demand shifts right; rise
c) money supply shifts left; rise
d) money supply shifts right; fall
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