An Increase in the Money Supply and Inflation Can Only

question 2

Multiple Choice

An increase in the money supply and inflation can only affect real variables only:

• A)if households perceive it is happening.
• B)if households do not perceive all of the inflation.
• C)in the long run.
• D)if households expect it.

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Definitions:

Partnership Business

A business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed.