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In the Short Run, an Increase in the Money Supply

question 95

Multiple Choice

In the short run, an increase in the money supply will have which of the following impacts on the market for money?


Definitions:

Underestimate

To assess something or someone as less in quantity, value, or importance than is actually the case.

Over-precision

The tendency to be too confident in one's own judgments, estimates, or predictions, often leading to errors or miscalculations.

Law Of Small Numbers

Tendency to overstate the probability that a certain event will occur when faced with relatively little information.

Anchoring

A cognitive bias in decision making where an individual relies too heavily on an initial piece of information to make subsequent judgments.

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