According to the Classical Dichotomy,which of the Following Increases When

question 16

Multiple Choice

According to the classical dichotomy,which of the following increases when the money supply increases?

• A)the real interest rate
• B)the real GDP
• C)the real wage
• D)the price level

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Definitions:

Inflation Rate

The rapidity with which the general pricing for services and products increases, diminishing the strength of currency.

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, typically associated with government bonds.