If the Money Supply and Total Demand Increase Faster Than

question 82

Multiple Choice

If the money supply and total demand increase faster than output, prices will:

• A) fall
• B) stay the same
• C) rise
• D) reflect lower inflation

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholders from its profits or reserves, distributed in the form of cash.

Financing Activities

Transactions and business events that involve raising funds to support company operations, investing activities, and shareholder returns, typically through borrowing or issuing equity.

Accounts Payable

The amount a company owes to suppliers or creditors for goods and services purchased on credit, represented as a liability on the balance sheet.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life.