If the Federal Reserve Unexpectedly Increases the Money Supply, Which

question 178

Multiple Choice

If the Federal Reserve unexpectedly increases the money supply, which of the following will most likely happen in the short run?

• A) real GDP will rise.
• B) real GDP will fall.
• C) real interest rates will rise.
• D) the budget deficit will rise.

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Definitions:

Achievement-oriented

A motivation or drive to meet or surpass a certain standard of excellence, often characterized by setting challenging goals and seeking feedback on performance.

Human Relations Style

A management approach focused on improving employee relationships, morale, and job satisfaction.

People Over Task

emphasizes prioritizing the well-being and interests of individuals involved in a project or organization over the mere completion of tasks.

Unilateral Fashion

denotes actions or policies implemented by one side or party without consultation with or agreement from others involved.