An Increase in the Money Supply

question 57

Multiple Choice

An increase in the money supply:

• A)can not affect real variables temporarily in the short run.
• B)can affect real variables in the long run.
• C)can affect nominal variables in the long run.
• D)all of the above.

---

Definitions:

FASB Membership

Individuals who serve on the Financial Accounting Standards Board, the organizaiton responsible for setting accounting standards in the United States.

CPAs

CPAs (Certified Public Accountants) are qualified accountants who have passed the CPA examination and met additional state certification and experience requirements.

Financial Accounting Foundation

An independent, private-sector organization responsible for the oversight, administration, and finances of its standard-setting boards, including the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB).

Capital Stock

The total amount of shares that a company is authorized to issue, as specified in its corporate charter.