In the Long Run, an Increase in the Quantity of Money

question 66

Multiple Choice

In the long run, an increase in the quantity of money, other things remaining the same,

• A) decreases the price level.
• B) has no effect on the price level or real GDP.
• C) decreases real GDP.
• D) increases real GDP.
• E) increases the price level.

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Definitions:

Evaluate

To calculate or determine the value of an expression or the solution to a problem.

Operations

Mathematical procedures like addition, subtraction, multiplication, and division used to solve equations or manipulate expressions.

Like Terms

Terms in an algebraic expression that have the same variable raised to the same power, making them combinable through addition or subtraction.

Evaluate

To assess or calculate the value or amount of something through analysis or computation.