An Increase in Money Supply Causes the Real Interest Rate

question 61

Multiple Choice

An increase in money supply causes the real interest rate to ________ and output to ________ in the short run,before prices adjust to restore equilibrium.

• A)rise; rise
• B)rise; fall
• C)fall; rise
• D)fall; fall

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Definitions:

Prosocial Behavior

Behavior such as sharing, helping, caregiving, and showing compassion.

Helping

Voluntary actions intended to provide aid, support, or benefit to another individual or group.

Enduring Trait

A personality characteristic that is stable over time and across situations, distinguishing one individual from another.

Aggressiveness

A behavior characterized by assertiveness, confrontation, or hostility towards others, often to assert dominance or achieve a goal.