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a sharp increase in the growth of the money supply is likely followed by a a recessi 637085

1 ________ theory relates changes in the quantity of money to changes in aggregate economic activity and the price level.

A) Monetary

B) Fiscal

C) Financial

D) Systemic

2 A sharp increase in the growth of the money supply is likely followed by

A) a recession.

B) a depression.

C) an increase in the inflation rate.

D) no change in the economy.

3 It is true that inflation is a

A) continuous increase in the money supply.

B) continuous fall in prices.

C) decline in interest rates.

D) continually rising price level.

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