In the Model with Sticky Prices, in the Short Run

question 12

Multiple Choice

In the model with sticky prices, in the short run a positive monetary shock leads to:

• A)an increase in household real money balances.
• B)a decrease in household's demand for goods.
• C)an increase in house hold's desired real money balances.
• D)all of the above.

---

Definitions:

Dopamine Production

The biochemical process leading to the synthesis of dopamine, a type of neurotransmitter that plays a major role in reward-motivated behavior and other functions in the brain.

Illicit Drugs

Substances whose production, sale, or consumption is prohibited by law due to their potential for abuse or harm.

Nerve Impulses

Electrical signals that travel along neurons to transmit information throughout the nervous system.