Which of the Following Cause and Effect Relationships Is True

question 4

Multiple Choice

Which of the following cause and effect relationships is true?

• A)an increase in reserve assets enables an increase in the supply of money
• B)an increase in deposit liabilities creates a surplus of credit in the economy
• C)an increase in reserve assets insures a depositors account
• D)a decrease in reserve assets enables an increase in the supply of money

---

Definitions:

Division Of Labor

Breaking down the production of a good into separate tasks

Smaller Tasks

Refers to actionable items or objectives that are components of a larger project or goal.

Specialization Of Labor

The division of labor where different workers or groups of workers engage in specific tasks, often leading to increased productivity.

Productivity

The ratio of a specific measure of output, such as real GDP, to a specific measure of input, such as labor; in this case, productivity measures real GDP per hour of labor.