If the Fed Unexpectedly Increases the Money Supply, Real GDP

question 183

Multiple Choice

If the Fed unexpectedly increases the money supply, real GDP

• A) increases because the resulting increase in the interest rate leads to a decrease in investment.
• B) increases because the resulting decrease in the interest rate leads to an increase in investment.
• C) decreases because the resulting increase in the interest rate leads to a decrease in investment.
• D) decreases because the resulting increase in the interest rate leads to an increase in investment.
• E) decreases because the resulting decrease in the interest rate leads to an increase in investment.

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Definitions:

Phospholipid

Lipid with phosphorus, resulting in a molecule with a polar end and a nonpolar end; main component of the lipid bilayer.

Apocrine

A type of gland that secretes substances by breaking off a part of the cell; found in the skin and eyelids.

Compound Acinar

A type of glandular structure in which secretory cells form sac-like acini connected to ducts, found in some exocrine glands such as the pancreas and salivary glands.

Branching Ducts

Part of the ductal system in various glands, branching off to increase the area of influence or secretion within an organ.