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Which of the following statements regarding the money supply and determination of short-term interest rates is least accurate?

A An increase in the real money supply from an initial equilibrium situation will cause households and businesses to sell interest-bearing securities.

From an initial equilibrium, an increase in real money balances will leave households and businesses with more money than they wish to hold, so they will purchase interest-bearing securities, driving their prices up and yields down until a new equilibrium short term rate is established.

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