In the Short Run,an Unanticipated Increase in the Money Supply

question 157

Multiple Choice

In the short run,an unanticipated increase in the money supply will

• A)increase interest rates and shift the aggregate demand curve to the left.
• B)increase interest rates and shift the aggregate demand curve to the right.
• C)lower interest rates and shift the aggregate demand curve to the left.
• D)lower interest rates and shift the aggregate demand curve to the right.

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Definitions:

Mercantilism Policy

It's an economic theory and practice where government regulation of a nation's economy is used to augment state power at the expense of rival national powers, emphasizing exports and discouraging imports.

Tax Policy

The approach taken by a government in setting the level of taxation and determining what types of taxes to collect.

Great Depression

A severe global economic downturn that took place during the 1930s, leading to widespread unemployment, poverty, and deflation.

Economic Policies

are strategies employed by governments or monetary authorities to influence the economic behavior of a country, including fiscal and monetary policies.