Suppose the 'Helicopter Option' Is Implemented and Freshly Printed Notes

question 76

Multiple Choice

Suppose the 'helicopter option' is implemented and freshly printed notes are distributed in the economy. This will lead to:

• A) an increase in the money supply.
• B) an increase in the equilibrium interest rate.
• C) a decline in consumption and investment.
• D) an increase in the elasticity of money demand.

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