According to Phelps and Friedman,in the Short Run,an Increase in the Money

question 30

Multiple Choice

According to Phelps and Friedman,in the short run,an increase in the money supply

• A)raises prices and unemployment.
• B)raises prices and reduces unemployment.
• C)reduces prices and raises unemployment.
• D)None of the above is correct.

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Definitions:

Charles II

The king of England, Scotland, and Ireland from 1660 to 1685, known for his role in the Restoration of the monarchy after the period of Oliver Cromwell's Commonwealth.

Anglo-Dutch War

A series of military conflicts between England (later Great Britain) and the Dutch Republic in the 17th and 18th centuries, largely over trade and maritime dominance.

New Amsterdam

The 17th century Dutch colony that was located at the southern tip of Manhattan Island, which later became New York City upon English acquisition.

New Netherland

A 17th-century colonial province of the Dutch Republic that included parts of present-day New York, New Jersey, Delaware, and Connecticut.