All else constant, an increase in the supply of money will lead to _______
A) an increase in the equilibrium quantity of money and an increase in the equilibrium price of bonds.
B) an increase in the equilibrium quantity of money and a decrease in the equilibrium price of bonds.
C) a decrease in the equilibrium quantity of money and an increase in the equilibrium price of bonds.
D) a decrease in the equilibrium quantity of money and a decrease in the equilibrium price of bonds.
Ans: A) an increase in the equilibrium quantity of money and an increase in the equilibrium price of bonds.
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