Money & Bank MCQ MB Chapter 5 Milton Friedman contends that it is entirely possible that when the money supply rises, interest rates may ________ if the ________ effect is more than offset by changes in income, the price level, and expected inflation.

Milton Friedman contends that it is entirely possible that when the money supply rises, interest rates may if the effect is more than offset by changes in income, the price level, and expected inflation.

MB Chapter 5

Milton Friedman contends that it is entirely possible that when the money supply rises, interest rates may if the effect is more than offset by changes in income, the price level, and expected inflation.

A) fall; liquidity
B) fall; risk
C) rise; liquidity
D) rise; risk

Answer: C

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Money & Bank MCQ

Milton Friedman contends that it is entirely possible that when the money supply rises, interest rates may ________ if the ________ effect is more than offset by changes in income, the price level, and expected inflation.

Milton Friedman contends that it is entirely possible that when the money supply rises, interest rates may ________ if the ________ effect is more than offset by changes in income, the price level, and expected inflation.

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Milton Friedman contends that it is entirely possible that when the money supply rises, interest rates may if the effect is more than offset by changes in income, the price level, and expected inflation.

Milton Friedman contends that it is entirely possible that when the money supply rises, interest rates may if the effect is more than offset by changes in income, the price level, and expected inflation.