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MMLU / When nominal GDP is rising we would expect money demand to

Problem

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question

When nominal GDP is rising we would expect money demand to

choices

  1. increase as consumers demand more money as a financial asset increasing the interest rate.
  2. increase as consumers demand more money for transactions increasing the interest rate.
  3. decrease as the purchasing power of the dollar is falling decreasing the interest rate.
  4. decrease as consumers demand more money for transactions increasing the interest rate.

subject

high_school_macroeconomics

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Official source

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