All Else Being Equal, a One-Time Increase in the Money

question 41

Multiple Choice

All else being equal, a one-time increase in the money supply leads to

• A)inflation.
• B)a one-time increase in the price level.
• C)a one-time shift to the left in the AD curve.
• D)a permanent shift to the right in the SRAS curve.

---

Definitions:

Financial Statements

Reports that provide an overview of a company's financial condition, including income statement, balance sheet, statement of cash flows, and statement of changes in equity.

Capital Assets

Long-term assets that a business uses in its operations and that are not intended for resale, such as property, plant, and equipment.

Deferral Method

An accounting practice that involves postponing the recognition of revenue or expenses until a future date.

Restricted Fund Method

An accounting practice for nonprofit organizations, segregating funds according to restrictions imposed by donors.