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Question
The short-run effect of an increase in the supply of money is
A) an increase in both real Gross Domestic Product (GDP) and the price level.
B) an increase in the price level but not in real Gross Domestic Product (GDP).
C) an increase in real Gross Domestic Product (GDP) but not in the price level.
D) an increase in the price level, a decrease in real Gross Domestic Product (GDP), but an increase in nominal national income.
Answer
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