1 Last week Clinton paid off $10,000 on his student loan. As a result,A. the money supply increased.B. both M1+ and M2+ increased.C. the money supply decreased.O D. M1+ increased but M2+ decreased.E. the money supply was not affected.

Last week Clinton paid off $10,000 on his student loan. As a result, A. the money supply increased. B. both M1+ and M2+ increased. O C. the money supply decreased. D. M1+ increased but M2+ decreased. O E. the money supply was not affected.

Last week Clinton paid off $10,000 on his student loan. As a result, A. the money supply increased. B. both M1+ and M2+ increased. O C. the money supply decreased. D. M1+ increased but M2+ decreased. O E. the money supply was not affected.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter14: Macroeconomic Policy: Tradeoffs, Expectations, Credibility, And Sources Of Business Cycles

Section: Chapter Questions

Problem 8E

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Question

Last week Clinton paid off $10,000 on his student loan. As a result,
A. the money supply increased.
B. both M1+ and M2+ increased.
C. the money supply decreased.
O D. M1+ increased but M2+ decreased.
E. the money supply was not affected.

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