Other things the same, if the money supply rises by 5% and people were expecting it to rise by 2%, then some firms have
a) lower than desired prices, which increases their sales.
b) higher than desired prices, which increases their sales.
c) higher than desired prices, which depresses their sales.
d) lower than desired prices, which depresses their sales.
Ans: a) lower than desired prices, which increases their sales.
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A) Y; e B) Y; Y C) e; e D) e; Y
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