As a Result of an Increase in the Growth Rate

question 101

Multiple Choice

As a result of an increase in the growth rate of money supply,

• A) real GDP growth rate increases only in the short run, and the inflation rate increases in both the short run and the long run.
• B) real GDP growth rate increases only in the long run, and the inflation rate increases only in the short run.
• C) real GDP growth rate increases in both the short run and the long run, and the inflation rate increases only in the short run.
• D) both the real growth rate and the inflation rate increase only in the short run.