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An increase in general price levels

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All other factors held constant, what would be the effect on the demand for money (M1) of each of the following situations. Explain the rationale behind your responses.

1. An increase in real GDP

2. An increase in general price levels

3. A rise in the interest rate on savings accounts and Treasury securities.

4. A doubling of all prices, wages, and incomes.

Reference no: EM13974944

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