Question: According to monetarist theory, what will be the short-run effect of an unexpected increase in the money supply?
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a.an appreciation of the foreign exchange rate
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b.an increase in employment
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c.an increase in real wages
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d.an increase in the rate of interast
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e.None of these
Answer: b
 an appreciation of the foreign exchange rate b) an increase in employment c) an increase in real wages d) an increase in the rate of interast e) None of these Ans. b) an increase in employment
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