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Economics Mcqs
Q
Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium economic theory suggests that the nation’s balance of payments would move into a surplus position if there occurred in the nation a (an) ?
AA. Increase in the money demand
BB. Decrease in the money demand
CC. Increase in the money demand
DD. None of the above
Correct Answer:
A. A. Increase in the money demand