Everything Else Remaining the Same, an Increase in Real GDP

question 72

Multiple Choice

Everything else remaining the same, an increase in real GDP

• A)does not change the demand for real money.
• B)increases the demand for real money.
• C)decreases the demand for real money.
• D)increases the demand for real money up to a point, and then demand will automatically fall.
• E)decreases the demand for real money up to a point, and then demand will automatically rise.

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Definitions:

Purchase Price

The amount of money paid to acquire a good, service, or asset.

Stock Split

An action by a company to divide its existing shares into multiple shares to boost the liquidity of the shares, although not affecting the company's overall market capitalization.

Retained Earnings

The portion of a company's profits not distributed as dividends to its shareholders but kept in the company to reinvest in its core business or to pay debt.

Equity Section

The portion of a company's balance sheet that represents the owners' claims to the assets after all liabilities have been deducted.