[Solved] If the Liquidity Effect Is Smaller Than the Other Effects,and

Question 139
Multiple Choice
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If the liquidity effect is smaller than the other effects,and the adjustment to expected inflation is slow,then the


A)interest rate will fall.
B)interest rate will rise.
C)interest rate will initially fall but eventually climb above the initial level in response to an increase in money growth.
D)interest rate will initially rise but eventually fall below the initial level in response to an increase in money growth.

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