An Increase in the Money Supply Will Cause

question 145

Multiple Choice

An increase in the money supply will cause:

• A) output to increase in the short- run and return to the potential output in the long run.
• B) output to decrease in the long run and return to potential output in the long run.
• C) output to increase in the long run and in the short run.
• D) output to decrease in the long run and in the short run.

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Definitions:

Cynical

Characterized by a belief that people are motivated purely by self-interest; skeptical of the integrity, sincerity, or motives of others.

Active Struggle

Engaging in a direct and energetic effort to achieve something or overcome difficulties.

Independence

The state of being self-sufficient and not reliant on others for support or decision making.

Departure

A phase or process of leaving a place or situation.