Which One of the Following Statements Is the MOST Accurate

question 45

Multiple Choice

Which one of the following statements is the MOST accurate?

• A) A permanent increase in the money supply cannot have any short-run effects.
• B) A permanent increase in taxes cannot have any short-run effects.
• C) A permanent decrease in the money supply cannot have short-run effects.
• D) A permanent decrease in taxes cannot have short-run effects.
• E) A permanent increase in money demand can be offset with a permanent increase in the money supply of equal magnitude.

---

Definitions:

Price Discrimination

Charging different prices to different buyers for products of like grade and quality.

Market Segments

Sub-groups of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities such as needs, wants, or interests.

Market Size

Market Size is the total volume or value of sales that a particular market reaches or is expected to reach within a specified period.

Cost-effectiveness

Evaluating the efficiency of an investment or expense based on the cost relative to the benefits or outcomes achieved.