In Economies with Persistently High Inflation, an Increase in the Money

question 79

Multiple Choice

In economies with persistently high inflation, an increase in the money supply will:

• A) translate into a proportional increase in the aggregate price level much faster than usual.
• B) translate into a proportional increase in the aggregate price level only in the long run.
• C) not affect either the aggregate price level or the aggregate output.
• D) translate into a proportional increase in the aggregate output much faster than usual.

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Definitions:

Hyperopia

A vision condition also known as farsightedness, where distant objects are seen more clearly than close ones.

Myopia

A common vision condition characterized by difficulty in seeing distant objects clearly, often referred to as nearsightedness.

Color Blindness

A visual deficiency where individuals have difficulty distinguishing between certain colors.

Amblyopia

A condition affecting vision development in which an eye cannot attain usual clarity, frequently called "lazy eye."