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An increase in the money supply decreases the interest rate in the short run.
An increase in the money supply decreases the interest rate in the short run.
An increase in interest rates implies a higher opportunity cost of holding money.
An increase in interest rates implies a higher opportunity cost of holding money.
Credit cards are a medium of exchange.
Credit cards are a medium of exchange.
The money multiplier equals 1/(1 - R), where R represents the reserve ratio.
The money multiplier equals 1/(1 - R), where R represents the reserve ratio.
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M1 is a more liquid measure of money supply than M2.
M1 is a more liquid measure of money supply than M2.
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