If Resource Owners Anticipated a Monetary Growth Rate of 6

question 79

Multiple Choice

If resource owners anticipated a monetary growth rate of 6 percent, but the money supply actually grew at only 2 percent, then _____

• A) real wages would fall.
• B) output would decrease.
• C) output would remain unchanged.
• D) output would increase, but only if nominal wages increased more rapidly than prices.
• E) the expected inflation rate was less than the actual rate.

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Definitions:

Accounting Forms

Documents used for recording financial transactions and maintaining accounting records.

Payee

A person who receives a payment.

Third-Party Check

A check made out to one recipient and given in payment to another, as with one made out to a patient rather than the medical practice.

Health Insurance Company

A firm that offers plans and policies that cover the costs of medical care, including treatments, surgeries, and sometimes prescription drugs.