According to New Keynesian Economists, Sustained Expected Increases in the Nominal

question 91

Multiple Choice

According to new Keynesian economists, sustained expected increases in the nominal money supply will lead to

• A)increases in output in the short run and sustained increases in prices in the long run.
• B)sustained increases in prices, with no short-run increases in output.
• C)short-run increases in prices and output, with a stable price level and no increases in output in the long run.
• D)sustained increases in both prices and output in the long run.

---

Definitions:

Accounts Payable Turnover Ratio

A financial metric used to analyze how quickly a company pays off its suppliers by comparing net credit purchases to the average accounts payable during a period.

FICA

The Federal Insurance Contributions Act (FICA) is a U.S. law that mandates a payroll tax on both employees and employers to fund Social Security and Medicare programs.

Social Security

A government program that provides financial benefits to retirees, disabled workers, and their families.

Current Liability

A company's debts or obligations that are due within one year or within the normal operating cycle.