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    Question

    Which of the following are affected by Money Supply:

    1.    Price Levels 2.    Exchange Rates 3.    Business Cycles  4. GDP Growth
    A 1 and 2 only Correct Answer Incorrect Answer
    B 3 and 4 only Correct Answer Incorrect Answer
    C 1, 2 and 4 only Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Money supply affects price levels, exchange rates and business cycles in the economy. It may also affect the growth of GDP.

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