What Is the Effect of Increases in the Capital Stock

question 172

Multiple Choice

What is the effect of increases in the capital stock and in the money supply on prices in the long run?

• A) Both make the price level rise.
• B) Both make the price level fall.
• C) Increases in the capital stock make the price level rise, while increases in the money supply make prices fall.
• D) Increases in the capital stock make the price level fall, while increases in the money supply make prices rise.

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Definitions:

Reputation

The overall perception or esteem in which an individual, organization, or product is held by the public based on past actions or performance.

Lawsuit

A legal action or proceeding involving a dispute between two or more parties seeking judicial resolution.

Grade Reduction

The lowering of academic grades based on criteria or performance below expected standards.

Omission

The act of leaving out or excluding something, either intentionally or accidentally.