MCQOPTIONS
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| 1. |
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) ? |
| A. | increase in the money demand |
| B. | decrease in the money demand |
| C. | increase in the money demand |
| D. | None of the above |
| Answer» B. decrease in the money demand | |