Other Things the Same,continued Increases in the Money Supply Lead

question 25

Multiple Choice

Other things the same,continued increases in the money supply lead to

• A)continued increases in the price level and real GDP.
• B)continued increases in the price level but not continued increases in real GDP.
• C)continued increases in real GDP but not continued increases in the price level.
• D)a one-time permanent increase in both prices and real GDP.

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Definitions:

Sales Taxes

Taxes imposed by governments on the sale of goods and services.

Motor Vehicle Licenses

Fees paid to a governmental authority for the registration and licensing of vehicles for operation on public roads.

Depreciation

The systematic allocation of an asset's cost over its useful life.

Useful Life

The estimated period that an asset is expected to be useful for the purpose it was acquired by the company.