In the Short Run, Which of the Following Is Not

question 122

Multiple Choice

In the short run, which of the following is not correct?

• A)Increasing the money supply increases the demand for goods and services.
• B)Increasing the money supply encourages firms to hire more workers.
• C)Lowering the money supply leads to a higher level of unemployment.
• D)Policies that encourage higher employment will also induce a lower rate of inflation.

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Definitions:

Ex-Ship

A term used in international trade that specifies the seller's obligation to deliver goods to a designated port of arrival, with risk transferring to the buyer once off-loaded.

No Arrival, No Sale

A contractual clause that voids a sale if the goods do not arrive at their destination, protecting buyers in international trade.

Shipment Contract

A shipment contract is an agreement where the seller is obligated to send goods to a designated location, but the risk of loss passes to the buyer once the seller gives the goods to a carrier.

Temperament

The inherent part of an individual's personality, including mood, disposition, and reactions, often evident from early infancy.