The Expansion of the Money Supply at a Rate That

question 37

Multiple Choice

The expansion of the money supply at a rate that exceeds the increase in goods and services will likely result in ________.

• A) expanding economy
• B) increased inflation
• C) interest rate declines
• D) lower GDP

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Definitions:

Crude Oil

A naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials that can be refined to produce usable products such as gasoline.

Real Terms

Describes values adjusted for inflation, allowing for the comparison of quantities as if prices had not changed over time.

Downward Trend

A situation in which market prices, economic indicators, or other measured data show a consistent decline over time.

Fracking

Fracking, short for hydraulic fracturing, is a technique used to extract oil and natural gas from the earth by injecting high-pressure fluid into underground rocks.