In the Short Run, an Unanticipated Increase in the Money

question 13

Multiple Choice

In the short run, an unanticipated increase in the money supply will exert its primary impact on

• A) output and employment rather than on prices.
• B) prices; output and employment will be largely unaffected.
• C) interest rates; rising interest rates will stimulate additional saving.
• D) prices, if the economy operates at an output level below its long-run supply constraint.

---

Definitions:

Community Building

The process of fostering connections, relationships, and a sense of belonging among members of a community to create a supportive and cohesive unit.

Corporate Social Responsibility

A business model in which companies integrate social and environmental concerns in their operations and interactions with stakeholders.

B Corporation

A certification awarded by B Lab, earned by a company’s rigorous adherence to social responsibility and sustainability.

Social Environmental Impact

The effect that activities and behaviors have on the social fabric and environment, encompassing both positive contributions and negative damages.