All Else Constant, an Increase in the Supply of Money

question 115

Multiple Choice

All else constant, an increase in the supply of money will lead to _______ in the equilibrium quantity of money and _______ in the equilibrium price of bonds.

• A)an increase, an increase
• B)an increase, a decrease
• C)a decrease, an increase
• D)a decrease, a decrease

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Definitions:

Terminal Buttons

The small knobs at the end of an axon that release chemicals (neurotransmitters) to transmit the neural signal to the next neuron.

Primary Inhibitory

Refers to the predominant or principal actions or mechanisms responsible for suppression or reduction of biological or chemical activity.

Neurotransmitter

Chemicals in the brain that transmit signals from one neuron to another across synapses.

Excitatory

Pertaining to or causing an increase in activity in the body or brain, often referring to neurotransmitters that promote the firing of neurons.