Which of the Following Is True

question 73

Multiple Choice

Which of the following is true?
I. The quantity theory predicts that in the long run the inflation rate equals the money growth rate minus the growth rate of potential GDP.
II. If the Fed decreases the federal funds rate, aggregate demand increases.
III. The Fedʹs monetary policy works by shifting the short-run aggregate supply curve.

• A) II and III
• B) I, II and III
• C) I and II
• D) I and III

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Definitions:

Ambidextrous

The ability of an organization to simultaneously explore new opportunities while exploiting existing ones to achieve superior performance.

Exploration

The act of searching or traveling around a new area in order to discover what it contains.

Innovation

The act of introducing new ideas, devices, or methods to improve processes or products.

More Organic

Describes organizational structures that are more flexible and adaptable, with a focus on decentralized decision-making.